A price ceiling below the market clearing price results in I. excess quantity demand II. excess quantity supplied III. entry of new producers
A) I only
B) II only
C) III only
D) Both I and III
A
You might also like to view...
Use the following graph to answer the next question.
Other things equal, a shift of the aggregate supply curve from AS0 to AS1 might be caused by a(n) ________.
A. decrease in aggregate demand B. increase in productivity C. decrease in nominal wages D. increase in government regulation
A central bank with a hierarchical mandate will seek ________ as a condition of pursuing other goals
A) stable inflation B) high employment C) moderate interest rates D) the approval of the legislature E) none of the above
The most recent data indicates households in the top fifth of the income distribution earn more than ten times as much income as those in the bottom fifth
a. True b. False
Comparative advantage implies choosing the activity that
A. has the lowest opportunity cost. B. does not demand any specialization. C. is inside the production possibilities frontier. D. has a high opportunity cost.