Price ceilings are imposed if the government believes:
a. the market will not achieve an equilibrium price.
b. the market equilibrium price is too low.
c. an excess supply of the product exists.
d. the market equilibrium price is too high.
e. the demand will be less than the supply of the product.
d
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At a competitive equilibrium with no externalities, taxes, subsidies, public goods, common resources, or high transactions costs, which of the following occurs?
i. an efficient outcome ii. definitely a fair outcome when judged by the fair-results approach iii. marginal cost equals marginal benefit iv. producer surplus equals consumer surplus A) i and iii B) i, ii and iii C) ii and iii D) i, ii, iii and iv E) only i
Limited liability is a benefit available only to
A) sole proprietorships. B) partnerships. C) corporations. D) All of the above.
Which of the following is true when a potato farmer keeps some of the farm's potatoes for personal use:
A. The potatoes must be reported in the gross domestic product. B. The farmer is engaging in an illegal activity. C. The farmer is not producing salable goods. D. The potatoes are not counted in the gross domestic product.
Refer to Table 9-3. If the required reserve ratio is 10%, what is the amount of excess reserves held by Alpha-Beta Bank?
A) $25 million B) $40 million C) $60 million D) $75 million