Why do price ceilings tend to cause persistent imbalances in the market?
a. Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage.
b. Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus.
c. Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage.
d. Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.
a
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In the loanable funds market, if the real interest rate is higher than the equilibrium real interest rate,
A) the demand for loanable funds curve shifts rightward to restore the equilibrium. B) there is a surplus of investment. C) there is a shortage of loanable funds. D) the demand for loanable funds curve shifts leftward to restore the equilibrium. E) there is a surplus of loanable funds.
Comparative advantage is the ability, compared with another producer
A) to produce more of a product with the same resources. B) to use fewer inputs to produce the same amount of a product. C) to produce a higher-quality product with fewer resources. D) to produce an additional unit of a product at lower opportunity cost.
The fastest growing economy between 1870 and 1979 was
A. the United Kingdom. B. the United States. C. Japan. D. Brazil.
If two firms behave as Cournot duopolists, the level of social welfare is lower than if the same firms act as a cartel
Indicate whether the statement is true or false