A price floor above the market clearing price typically results in I. an excess quantity supplied II. a shortage III. an excess quantity demand
A) I only
B) II only
C) III only
D) II and III only
A
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Average total cost equals
A) the change in total cost divided by the change in output. B) total fixed cost divided by output. C) average fixed cost plus average variable cost. D) total cost minus total variable cost. E) average fixed cost plus average variable cost plus marginal cost.
New growth theory assumes that
A) all inputs experience diminishing returns. B) only random technological advances produce growth. C) knowledge does not experience diminishing returns. D) None of the above answers is correct.
Between 1950 and 2009, the average length of recessions in the United States was
A) 11 months. B) two years. C) three months. D) eighteen months.
If the nominal interest rate increases:
A. the velocity of money should decrease. B. the cost of holding money increases and the velocity of money should decrease. C. the cost of holding money decreases. D. the cost of holding money increases.