Summarize the impacts of prices ceilings and price floors on the free market
What will be an ideal response?
A price ceiling is a maximum price, set by law, that sellers can charge for a good or service. A price floor is a minimum price, set by government, that must be paid for a good or service. Many farmers in the United States rely on price supports or other government programs.
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Which of the following is a possible result of adverse selection?
a. Only lemons remain in the market for used cars. b. A store manager shirks his responsibility because his supervisor is not present at all times. c. A car mechanic does not bother to properly fix the customers' cars when his work cannot be monitored. d. Many people selling their houses at very low prices expecting prices to decline further.
The first money issued by a United States' governmental authority were
a. bank notes issued by the United States Treasury 1766, 10 years before the founding of the Republic b. silver certificates issued by the Federal Reserve on the eve of the American revolution c. Continental Notes issued by the Continental Congress to finance the Revolutionary War d. greenbacks issued by the Treasury to finance the War of 1812 e. gold certificates issued by the Federal Reserve during American revolution