A shortage will occur if a ________ is set ________ the equilibrium price.
A. price ceiling; below
B. price floor; above
C. price floor; below
D. price ceiling; above
Answer: A
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Answer the following statement(s) true (T) or false (F)
1. A market price contains no more information about a good than a good social planner would be able to obtain. 2. According to F.A. Hayek, knowledge is lost as statistics are used to convey information. 3. Whether a good is distributed by a social planner or a market system, the area beneath the demand curve out to the quantity available accurately measures the value consumers receive. 4. When allocation decision are not made on the basis of price traditional methods of social gain understate the actual gain to society.
Which of the following is likely to be an unreported economic activity?
A) the brokerage fees paid to a broker at Merrill Lynch B) the purchase of shares of stock in Walgreen's Pharmacy C) a $250,000 bonus paid to the CEO of a company D) tips paid to a taxi driver E) the minimum wage paid to a teenager working at a McDonald's
A good that is most likely to be in the producer price index is:
A. industrial machinery. B. SUV. C. spaghetti. D. All of these are in the PPI.
How does the existence of the fringe alter the price and output in an oligopoly market?