A binding price floor is presented graphically as a(n):
a. price at equilibrium.
b. price below equilibrium.
c. price above equilibrium.
d. inefficiently high quality of the good provided
Ans: c. price above equilibrium.
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When Fred's income was $100 per week, 10 units of good X were demanded. Now his income is $150 per week and 12 units of good X are demanded. Using the percentage change formula, the income elasticity of demand for good X equals
A) 0.45. B) 0.40. C) 2.20. D) 2.50.
Since rent controls have been in effect in New York City, apartments have been more plentiful
a. True b. False Indicate whether the statement is true or false
The principal way in which an economy self-corrects from an inflationary gap is through
A. deflation, which increases purchasing power. B. inflation, which reduces purchasing power. C. disinflation, which maintains purchasing power. D. price level decreases, which stimulate production.
Recall the Application about the effects of increasing state level Earned Income Tax Credit (EITC) on child health in the United States to answer the following question(s).Recall the Application. How does EITC affect government health expenditures?
A. EITC raises private insurance coverage, causing a corresponding decrease in public health insurance expenditures in Medicaid and Children's Health Insurance Program (CHIP). B. EITC has no effect on public health insurance expenditures in Medicaid and Children's Health Insurance Program (CHIP). C. EITC raises private insurance coverage and a similar increase in public health insurance expenditures in Medicaid and Children's Health Insurance Program (CHIP). D. EITC lowers private insurance coverage, causing a corresponding increase in public health insurance expenditures in Medicaid and Children's Health Insurance Program (CHIP).