A price ceiling that is set above the equilibrium price will result in:
A. a loss in total economic surplus.
B. a market price that is above the equilibrium price.
C. no change in total economic surplus.
D. an increase in consumer surplus.
Answer: C
You might also like to view...
An advantage of the corporate form of business organization is
A) unlimited liability. B) easier access to capital. C) that profits are taxed only on one level. D) government supervision of its activities.
The property of money that allows us not to worry about "using it before it spoils" is called the
A. medium of exchange. B. store of value. C. security of value. D. creation of value.
A legal claim against a firm that usually entitles the owner of the claim to receive a fixed annual coupon payment, plus a lump-sum payment at some future date, is known as
A) a bond. B) a share of common stock. C) a share of preferred stock. D) a reinvestment coupon.
Productivity is a key concept for measuring
A. average inflation rates. B. employment levels. C. the health and prosperity of an economy. D. aggregate production function.