If a government-imposed price ceiling causes the observed price in a market to be below the equilibrium price
A) there will be excess demand.
B) there will be excess supply.
C) the curves will shift to make a new equilibrium at the regulated price.
D) None of the above.
A
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Asymmetric information before a transaction takes place generates the problem of
A) moral hazard. B) adverse selection. C) bank runs. D) irrational behavior.
Elasticity provides a guide to both
A. market stability and change in revenue as price changes. B. responsiveness of quantity demanded to a change in price and market stability. C. responsiveness of quantity demanded to a change in price and change in revenue as price changes. D. technological change and change in revenue as price changes.
Savings and loan associations created which type of money?
a. demand deposit accounts b. money market mutual fund accounts c. NOW account deposits d. money market mutual deposit accounts e. share-draft accounts
Profit-maximizing firms in a competitive market produce an output level where
a. marginal cost equals marginal revenue. b. marginal cost equals average total cost. c. marginal revenue is increasing. d. price is less than marginal revenue.