If a price ceiling is set below the equilibrium price in a market
A. surpluses of the commodity will develop.
B. rationing will be unnecessary.
C. the quantity supplied will exceed the quantity demanded.
D. the quantity demanded will exceed the quantity supplied.
Answer: D
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Refer to the figure above. If a price control is imposed at $8, what is the new producer surplus in the market?
A) $20 B) $40 C) $60 D) $80
The rate of interest banks charge other banks for overnight loans of reserves is the
A) prime rate. B) discount rate. C) federal funds rate. D) real rate.
A variable that tends to move later than aggregate economic activity is called
A) a leading variable. B) a coincident variable. C) a lagging variable. D) an acyclical variable.
Country A can produce both wheat and oranges using fewer resources than country B. Which of the following statements is true?
A. Country A has a comparative advantage in producing both goods. B. Country A has an absolute advantage in producing both goods. C. Country B has no comparative advantage. D. Country B must have an absolute advantage in producing one of the goods.