Which statement is true?
A. An effective price ceiling is above equilibrium price and causes surpluses.
B. An effective price ceiling is above equilibrium price and causes shortages.
C. An effective price ceiling is below equilibrium price and causes surpluses.
D. An effective price ceiling is below equilibrium price and causes shortages.
D. An effective price ceiling is below equilibrium price and causes shortages.
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
If the credits for a principles of economics section is three units and an instructor teaches two sections with 100 students in each and tuition and fees at your university are $40 per unit. If the instructor is paid $ 30,000 to teach both classes, should the university hire the instructor?
A. Yes, the MRP of the instructor is higher than the wage. B. Yes, the wage is higher than the instructor's MRP. C. No, the MRP of the instructor is higher than the wage. D. No, the wage is higher than the instructor's MRP.
Inventory investment refers to
A) the difference between production and sales in a given year. B) fixed investment. C) nonresidential investment. D) the purchase by firms of new machines.
If a policy maker wants to change taxes to encourage individuals to increase their labor supply, the policy maker should
A. increase taxes by a lump sum. B. reduce the income tax rates that individuals pay. C. reduce taxes by a lump-sum amount. D. increase the income tax rates that individuals pay.