If a price floor is set above the equilibrium price in a market
A. the quantity supplied will exceed the quantity demanded.
B. the quantity demanded will exceed the quantity supplied.
C. rationing will be unnecessary.
D. shortages will develop.
Answer: A
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To borrow funds between tax payment dates, city governments can issue
A) tax anticipation notes. B) corporate bonds. C) general obligation bonds. D) revenue bonds.
If an economy that produces capital and consumer goods is operating at a point on its production possibilities curve:
A. the economy is incapable of achieving significant economic growth. B. it is achieving full employment but not full production. C. more capital goods can be produced only at the cost of some consumer goods. D. it is achieving full production but not full employment.
You are the manager of a firm that sells its product in a competitive market at a price of $60. Your firm's cost function is C = 33 + 3Q2. The profit-maximizing output for your firm is:
A. 10. B. 6. C. 5. D. 3.
A commercial bank has checkable-deposit liabilities of $50,000 and a reserve ratio of 20 percent. What is the amount of required reserves?
A. $1 million B. $10,000 C. $50,000 D. $250,000