A market in which a price-controlled good is sold at an illegally high price is known as
A) a flooring market.
B) a ceiling market.
C) a black market.
D) a supermarket.
Ques. 2Keynes argued that I. Capitalism did not always lead to full employment. II. Nominal prices were more important than relative prices.
A) I only
B) II only
C) Both I and II
D) Neither I nor II
Ques. 3Which law specifically mandated the federal government's responsibility for economy-wide stability?
A) the Employment Act of 1946
B) the Sherman Act of 1890
C) the Great Depression Act of 1930
D) the Miller Act of 1960
Ques. 4Briefly discuss the determinants of demand other than price.
What will be an ideal response?
Ques. 5Which of the following statements is a normative as opposed to a positive economic statement?
A) Consumer spending generates more jobs.
B) If the price of gasoline goes up, people buy less.
C) Labor unions should be allowed to organize in every industry.
D) Government intervention in markets is common in many countries.
Ques. 6An effective price ceiling usually generates
A) fire sales as firms try to unload their excess inventories.
B) higher nominal prices.
C) the use of nonprice rationing devices.
D) happy sellers and dissatisfied buyers.
Quick Reply
