A price floor
A) changes the equilibrium price if it is imposed in black markets.
B) changes the price and quantity if it is set below the equilibrium price.
C) changes the price and quantity if it is set above the equilibrium price.
D) does not create a black market if it is set above the equilibrium price.
E) changes the price and quantity only if it equals the equilibrium price.
C
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When the housing bubble collapsed, the entire borrowing and lending engine of the economy ground to a halt because:
A. banks wanted to lend to no one, in case they turned out to be a bad risk. B. the herd instinct became to not borrow or lend. C. no one could tell which banks were safe, and which were not. D. All of these statements are true.
Assume that Spain will either specialize in producing cars or TVs. What is their opportunity cost of producing 8 TVs?
