Which of the following is true?
a. It is possible to eliminate a surplus by raising a price floor sufficiently.
b. It is possible to create a surplus by raising a price ceiling sufficiently
c. It is possible to eliminate a shortage by raising a price ceiling sufficiently.
d. It is possible to create a shortage by lowering a price floor sufficiently.
c
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The property that macroeconomic variables fluctuate together in patterns that exhibit strong regularities is called
A) coincidence. B) co-movement. C) correlation. D) coexistence.
A change in the price level will cause a shift in the expenditure schedule.
Answer the following statement true (T) or false (F)
Economist A.C. Pigou argued that to deal with a negative externality in production, the government should impose a tax equal to the cost of the externality
What did Pigou believe should be done in the case of a positive externality in consumption? How would his recommendation impact the demand and market equilibrium for the product which is generating the positive externality?
Cartels persist despite laws against them because
A) international cartels are legal. B) it is impossible to convict firms. C) of the Prisoners' Dilemma issue. D) All of the above.