When a government increases an effective price ceiling for a product
A) the shortage in the market will be reduced.
B) the shortage in the market will be increased.
C) the surplus in the market will be reduced.
D) the surplus in the market will increase.
Answer: A
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The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product
A) is sometimes greater than and other times less than B) equals C) is greater than D) is less than
Refer to Figure 23-4. Potential GDP equals $100 billion. The economy is currently producing GDP1 which is equal to $90 billion. If the MPC is 0.8, then how much must autonomous spending change for the economy to move to potential GDP?
A) -$18 billion B) -$2 billion C) $2 billion D) $18 billion
Poverty is found to be correlated with
a. age and race but not family composition. b. race only. c. race and family composition but not age. d. age, race, and family composition.
We would expect the own price elasticity of demand for food to be:
A. perfectly inelastic. B. more elastic than the demand for cereal. C. the same as that for soap. D. less elastic than the demand for cereal.