For a particular product, an effective price floor results in
A. quantity demanded equal to quantity supplied.
B. quantity supplied greater than quantity demanded.
C. demand equal to supply.
D. quantity demanded greater than quantity supplied.
Answer: B
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The total value of inputs used in the production of 100,000 units of a good manufactured in a country is $150,000. Assume that the country produces only this good and each unit of the good sells for $10
What is the gross domestic product of the country? A) $1,000,000 B) $250,000 C) $150,000 D) $1,150,000
Autonomous expenditure is a type of expenditure that does not depend on
A) GDP. B) wealth. C) expectations. D) rates.
In the United States, before OPEC increased the price of crude oil in 1973, there was
a. no price ceiling on gasoline. b. a nonbinding price ceiling on gasoline. c. a binding price ceiling on gasoline. d. a nonbinding price floor on gasoline.
In a binding situation, changes in government spending do not shift the AD curve.
Answer the following statement true (T) or false (F)