A price ceiling imposed on a good that is below the equilibrium price will result in a shortage of that good.
a. True
b. False
Indicate whether the statement is true or false
Question 2Which of the following would mostly likely shift the production possibilities curve in an outward direction?
a. a decrease in the current rate of unemployment
b. a movement along the curve sacrificing capital goods for consumption goods
c. an increase in the price of goods and services
d. advances in medicine that reduce the incidence of disease and lengthen productive life spans
Question 3An increase in disposable income would tend to shift aggregate demand right.
a. True
b. False
Indicate whether the statement is true or false
Question 4A price floor does not benefit producers.
a. True
b. False
Indicate whether the statement is true or false
Question 5When more resources in an economy are devoted to the production of capital goods:
a. the production possibilities curve shifts inward.
b. the production possibilities curve in the current period shifts inward, but shifts outward in the future.
c. the production possibilities curve shifts outward next in the future.
d. the production possibilities curve is unchanged from period to period.
Question 6A trade deficit means that net exports are positive.
a. True
b. False
Indicate whether the statement is true or false
Question 7A price floor is the minimum price that consumers have to pay for a particular product.
a. True
b. False
Indicate whether the statement is true or false
Question 8When economic growth occurs it will:
a. eventually eliminate scarcity.
b. shift the production possibilities curve to the left.
c. be a product of luck.
d. often result from improved technology.
Question 9Exports are not included in GDP because they do not reflect domestic consumption.
a. True
b. False
Indicate whether the statement is true or false
Question 10When a market is in surplus, there is pressure for the price to move upward.
a. True
b. False
Indicate whether the statement is true or false