When a binding price ceiling is imposed on a market,
a. price no longer serves as a rationing device.
b. the quantity supplied at the price ceiling exceeds the quantity that would have been supplied without the price ceiling.
c. all buyers benefit.
d. All of the above are correct.
a
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Which of the following is one of the functions of rental prices?
A) to redistribute income from landlords to renters B) to redistribute income from renters to landlords C) to signal to the local government when taxes on rental units should be increased D) to ration the use of existing housing for current consumers
A President of the United States promises to simultaneously produce more defense goods without any decreases in the production of other goods. Under which of the following conditions could such a promise be valid?
A) if the U.S. were producing at a point on its production possibilities curve B) if the U.S. were producing inside its production possibilities curve C) if the U.S. were producing to the right of its production possibilities curve D) none of the above; the production possibilities curve must shift to the right
Suppose the domestic supply (QS) and demand (QD) for MP3 players in the United States is represented by the following set of equations:QS = -25 + 10PQD = 875 - 5PIn the absence of international trade in MP3 players, what will be the price of MP3 players in the United States?
A. $65 B. $70 C. $60 D. $90
If a decrease in net taxes in the United States resulted in a very large increase in aggregate output and a very small increase in the price level, then the U.S. economy must have been
A. on the very flat part of the short-run aggregate demand curve. B. on the very steep part of the short-run aggregate demand curve. C. on the very steep part of the short-run aggregate supply curve. D. on the very flat part of the short-run aggregate supply curve.