An effective price ceiling will:
A. induce new firms to enter the industry.
B. result in a product shortage.
C. result in a product surplus.
D. clear the market.
Answer: B
You might also like to view...
Explain what a macroeconomic shock is, and give three examples of macroeconomic shocks to the U.S. economy in the past 10 years
What will be an ideal response?
When people are separated into different jobs on the basis of sex, it is referred to as:
a. statistical discrimination. b. employer prejudice. c. worker prejudice. d. occupational segregation. e. occupational crowding.
The government giving the ownership of a pond to a citizen to reduce over fishing is a method to prevent _____
a. the free rider problem b. the tragedy of the commons c. asymmetric information d. deadweight loss
In the long run, each firm in a competitive industry earns
a. zero accounting profits. b. zero economic profits. c. positive economic profits. d. positive, negative, or zero economic profits.