In a market where the price is restricted by price floors or price ceilings,
a. all sellers will be able to sell everything they produce.
b. surpluses and shortages will exist.
c. all buyers will get what they want.
d. disequilibrium will automatically correct itself.
e. surpluses and shortages will put pressure on the price to move to its equilibrium.
b
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If government expenditure on goods and services increase by $100 billion, then aggregate demand
A) increases by $100 billion. B) increases by less than $100 billion. C) increases by more than $100 billion. D) remains unchanged. E) decreases by more than $100 billion.
Which of the following statements regarding the requirement that a firm be granted a license to operate in a particular market is false?
A) Advocates of licensing maintain that the practice is necessary to maintain quality of service. B) One of the economic effects of a license requirement is to constrain the available supply of the affected good or service. C) The requirement that they be licensed ensures that the affected firms will be able to earn a positive economic profit. D) Relaxing certain licensing requirements should increase the supply of the affected good or service.
Which of the following is true at each output level for a perfectly competitive firm?
a. MC = AVC = ATC b. MR = MC c. P > AVC d. AR = MR = P e. MR = AR = MC
As the investment demand curve becomes steeper, the crowding-out effect will become smaller
a. True b. False Indicate whether the statement is true or false