Assume no price ceiling exists in a market. Then a price ceiling is established below the market equilibrium. What would result?
a. The exchange price
b. Equilibrium
c. Shortage
d. Surplus
c
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If you deposit $20,000 in cash into a demand deposit account at a bank that faces an 18 percent required reserve ratio the result will be:
a. the bank will add $3,600 to its excess reserves. b. the bank will add $16,400 to its excess reserves. c. the bank will add $16,400 to its total reserves. d. the bank will add $20,000 to its excess reserves.
If resources are better suited toward the production of one good than toward another good, then the PPF for those two goods is
A) a straight line. B) bowed outward. C) upward sloping. D) any of the above
The income effect isolates the change in the consumption of a good caused by the change in:
A. consumer preferences. B. "real" income. C. the relative prices of two goods. D. None of the statements is correct.
The concentration and HHI reported in the U.S. Bureau of Census must be interpreted with caution since:
A. the definition of product classes used to define an industry affects the results. B. they are based on figures for the entire national market. C. they are calculated by excluding foreign imports, hence they bias upward the degree of concentration. D. All of the answers are correct.