A price ceiling of $8 placed on the market in the graph shown:
A. is binding, and causes a surplus.
B. is non-binding, and does not affect the market.
C. is non-binding, and does not prevent the market from reaching equilibrium.
D. is binding, and causes a shortage.
Answer: D
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You have a bond that pays $60 per year in coupon payments. Which of the following would result in an increase in the price of your bond?
A) The price of a share of stock in the company falls. B) Coupon payments on newly-issued bonds fall to $50 per year. C) Coupon payments on newly-issued bonds rise to $80 per year. D) The likelihood that the firm issuing your bond will default on debt increases.
Which of the following is responsible for controlling the money supply?
A) the Congress B) the Supreme Court C) the Federal Reserve D) the president
The majority of economists believe that the social benefit of mandating measles vaccines for all Americans (except those with compelling medical reasons) would exceed the social cost
a. True b. False Indicate whether the statement is true or false
Slower real wage growth in the U.S. since the 1970s accompanied by rapid job growth, can be explained by:
A. skill-biased technological change. B. a productivity slowdown accompanied by a decrease in the labor supply. C. globalization. D. a productivity slowdown accompanied by an increase in the labor supply.