What is a price ceiling and why must it be below the equilibrium price to be effective?
What will be an ideal response?
A price ceiling is a maximum price. It is only effective below the equilibrium price because the market will remain at equilibrium if a maximum price is set above the equilibrium price.
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Which of the following factors tends to lower the average wages for women?
a. Women leaving the workforce to raise their children b. Women receiving less than one-third of all advanced degrees c. Fewer women earning college degrees than in the past d. Fewer women seeking experience in the service industry
The M1 definition of money includes money market accounts.
Answer the following statement true (T) or false (F)
Suppose in a country, the working-age population doubles due to immigration. However, the country neglects investment in research and development and hence the country's level of technology is stagnant
Which of the following statements will be true of this economy? A) The economy will experience steady economic growth. B) The savings rate will remain stagnant over the years. C) The economy's output will rise at an increasing rate over time. D) The economy cannot achieve a sustained growth.
Positive marginal utility implies increasing total utility
a. True b. False