A price floor set above an equilibrium price tends to cause persistent imbalances in the market because
a. Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage.
b. Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus.
c. Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage.
d. Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.
D
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Which round of GATT first addressed subsidies?
What will be an ideal response?
Which of the following statements is true regarding the expected revenues of auctions with risk-neutral bidders where value estimates are affiliated?
A. English > Second price > Dutch = First price. B. English = First price = Dutch = Second price. C. Second price > English > Dutch > First price. D. First price = Dutch > Second price > English.
Economists use what term to describe the want-satisfying power of a good?
A. demand B. marginal propensity to consume C. income elasticity D. utility
The main purpose of federal deposit insurance is to __________.
Fill in the blank(s) with the appropriate word(s).