Which of the following is an accurate statement about price ceilings?
a. They often clarify price signals sent to consumers.
b. They often distort price signals sent to producers.
c. They often enable price signals to be sent to consumers.
d. They often prevent price signals from being sent to producers.
b. They often distort price signals sent to producers.
You might also like to view...
According to economists who promote sticky-price theories
A) only fiscal policy is an effective stabilization policy. B) only monetary policy is an effective stabilization policy. C) both fiscal and monetary policy can be effective stabilization policies. D) neither fiscal nor monetary policy is an effective stabilization policy.
The budget deficit or surplus is:
A. well defined and straightforward to measure. B. difficult to measure and can be defined legitimately in several ways. C. so arbitrarily defined that it is meaningless. D. well defined but frequently distorted by creative but improper accounting practices.
For each of the following changes, what happens to the real interest rate and output in the very short run, before the price level has adjusted to restore general equilibrium?(a)Wealth declines.(b)Money supply declines.(c)The future marginal productivity of capital declines.(d)Expected inflation rises.(e)Future income rises.
What will be an ideal response?
Consider the hypothetical supply and demand of Kidneys.
If the government allows the buying and selling of kidneys, what will be the resulting price and quantity of kidneys?
A. (1200, 2000) B. No kidneys would be exchanged. C. (0, 900) D. (1500, 900)