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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Suppose that the technology used to manufacture laptops has improved. The likely result would be:
A. a decrease in quantity supplied of laptops. B. an increase in quantity supplied of laptops. C. a decrease in supply of laptops. D. an increase in supply of laptops.
The range in which a duopoly's output falls is less than or equal to the output level in ________ and more than or equal to the output level in ________
A) monopolistic competition; monopoly B) monopolistic competition; perfect competition C) perfect competition; monopoly D) monopoly; monopolistic competition E) monopoly; perfect competition
The purchasing power parity theory usually does not explain exchange rates at a particular point in time because of trade barriers, central bank intervention in exchange markets, and the fact that many products are not traded or are not comparable across countries
Indicate whether the statement is true or false
Dissaving occurs when
A. disposable income exceeds consumption. B. the marginal propensity to consume is equal to zero. C. the marginal propensity to save is greater than 1. D. consumption exceeds disposable income.