To have an effect on the market price, price ceilings must be set above the equilibrium price. ?
Answer the following statement true (T) or false (F)
False
Rationale: To have an effect on the market, price ceilings must be set BELOW the equilibrium price.
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If you left $2,500 on deposit with a bank promising to pay you a 5 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:
A. $28,668 B. $11,467 C. $250,750 D. $2,625
"Supply creates its own demand" implies that
A) the very act of supplying a particular level of goods and services will not necessarily equal the level of goods and services demanded. B) the very act of demanding a particular level of goods and services necessarily equals the level of goods and services supplied. C) the very act of supplying a particular level of goods and services necessarily equals the level of goods and services demanded. D) the government will buy up any surplus of goods and services in a country to avoid economic problems.
A monopolistically competitive firm is like a monopoly firm insofar as
A) both face perfectly elastic demand. B) both earn an economic profit in the long run. C) both have MR curves that lie below their demand curves. D) neither is protected by high barriers to entry.
Referring to the previous question, all else constant, a 5 unit increase in the wage index would cause:
A) quantity supplied to increase by 9 units and be shown by a movement up the supply curve. B) quantity supplied to decrease by 9 units and be shown by a movement down the supply curve. C) quantity supplied to increase by 9 units and be shown by a rightward shift of the supply curve. D) quantity supplied to decrease by 9 units and be shown by a leftward shift of the supply curve.