If a price floor is set below the current market clearing price, then
A) a surplus must immediately occur.
B) a shortage must immediately occur.
C) there will be incentives for black markets to develop.
D) quantity demanded will remain equal to quantity supplied at the current market clearing price.
D
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Refer to Table 15-4. What is the economically efficient output level?
A) 5 units B) 6 units C) 7 units D) 8 units
An increase in planned savings, all else held constant, will always result in
a. a slowdown in the circular flow of income. b. an increase in the circular flow. c. an increase in planned investment spending. d. an increase in the price level.
The majority of the poor are
A. Hispanic. B. white, non-Hispanic. C. black, non-Hispanic. D. no one ethnic group makes up the majority.
Refer to Common Property I. The efficient level of production and consumption on the common property is
a. zero. b. Q1. c. Q2 d. cannot be determined from the graph.