A legal maximum on the price at which a good can be sold is called a price
a. floor.
b. subsidy.
c. support.
d. ceiling.
d
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Which of the following is not true when a monopoly market is in equilibrium?
A) Consumer well being would be improved if less resources were allocated to the industry in which the monopoly operates. B) Price > MC. C) Price > MR. D) Price = Average Revenue.
Which of the following statements is consistent with the law of supply?
a. An increase in the quantity supplied of buns will result in a decrease in the price of buns. b. An increase in the quantity supplied of buns will result in an increase in the price of buns. c. An increase in the price of buns will result in a decrease in the quantity supplied of buns. d. An increase in the price of buns will result in an increase in the quantity supplied of buns.
Two types of bias that tend to cause the CPI to overstate the "true" rate of inflation are the ________ bias and the ________ bias.
A. quality adjustment; price adjustment B. price; quantity C. aggregation; price D. substitution; quality adjustment
Figure 8-1
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Given the scatter diagram in Figure 8-1, if real disposable income is $600 billion and asset wealth increases by $100 billion, how much will consumers spend?
A. $550 billion B. $450 billion C. $600 billion D. Cannot be determined