A price ceiling is ______ if it is set _____ the market equilibrium price
A. efficient and fair; below
B. unfair but efficient; equal to
C. efficient and unfair; above
D. inefficient and unfair; below
D A price ceiling set below the equilibrium price creates ineffi-ciency and is unfair by both measures of fairness.
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If the demand effect dominates during a currency depreciation, then
A. real GDP should fall. B. real GDP should increase. C. the price level should fall. D. net exports should decrease.
The income tax system serves as an automatic stabilizer over the course of the business cycle
Indicate whether the statement is true or false
If a 10 percent increase in the price of tomatoes leads to a 20 percent decrease in quantity demanded, then the price elasticity of demand for tomatoes, , equals -2
a. True b. False Indicate whether the statement is true or false
Explain whether it is possible for a country to have a comparative advantage in the production of a product without having an absolute advantage in the production of that product
What will be an ideal response?