If a price ceiling is imposed,
a. the market supply curve shifts to the right
b. the market demand curve shifts to the left
c. an excess demand for the good results
d. the government would be required to buy the excess supply of the good
e. the equilibrium price falls below the price level the government wishes to achieve
C
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Which one of the following statements is true?
a. Water use is clearly higher in countries with higher income levels b. Water use is clearly higher in countries with lower income levels c. Water use in a country is closely linked to the level of manufacturing d. Water use in a country is closely linked to the level of agriculture e. Water use in a country is clearly linked to electricity use
The quality adjustment bias of the CPI refers to the failure of statisticians to:
A. take into account price changes in goods and services. B. allow for the possibility that consumers switch from products whose prices are rising. C. take into account improvements in goods and services. D. allow for the possibility that consumers switch stores at which they shop.