A price ceiling set below the market clearing price will tend to cause which of the following?
A) a surplus
B) a shortage
C) an increase in demand
D) a reduction in supply
Answer: B
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Your electrician accepts payment only in cash in order to avoid taxes. If you pay him $100, ________
A) the GDP of your country will increase B) the GDP of your country will remain unchanged C) the trade surplus of your country will increase D) the GDP of your country will fall
Which of the following will not result in a rightward shift of the market supply curve for labor?
a. an increase in immigration b. an increase in labor productivity c. an increase in the working-age population d. a decrease in nonwage income
Debt ceilings are designed to
A. Specifically reduce the debt held by banks. B. Do nothing since the Supreme Court held them unconstitutional in 1985. C. Reduce the deficit. D. Balance the federal budget.
Explain the equimarginal rule.
What will be an ideal response?