Price ceilings cause
a. Some suppliers to drop out of the market as they cannot charge the price they were earlier charging
b. A reduction in the quality of the product
c. The creation of black markets
d. All the above
d
You might also like to view...
If a good is a normal good, an increase in income will
A) decrease the quantity demanded of the good. B) increase the demand for the good. C) cause the demand curve for the good to shift to the left. D) cause a movement down along the demand curve.
Higher unemployment insurance benefits tend to increase unemployment because they
a. reduce the opportunity cost of job search and, hence, increase the search time. b. increase the opportunity cost of job search and, hence, increase the search time. c. reduce the opportunity cost of job search and, hence, decrease the search time. d. increase the opportunity cost of job search and, hence, decrease the search time.
Explain the prisoner’s dilemma case in game theory and its relevance to the maximin criterion.
What will be an ideal response?
Which of the following is a drawback of including proxy variables in a regression model?
A. It leads to misspecification analysis. B. It reduces the error variance. C. It increases the error variance. D. It exacerbates multicollinearity.