If the Chinese government sets a price ceiling below the equilibrium price, the result will be to
A) increase total surplus.
B) create deadweight loss.
C) increase surplus and create deadweight loss.
D) eliminate deadweight loss.
B
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The purpose of a chain-weighted price index is to account for:
A) the costs of purchasing wholesale products like chains and industrial goods. B) the changes in the quantities of goods and services purchased over time. C) linkages in price changes among industrialized countries. D) none of the above
Which of the following is true of an economic model? a. It is a simplified representation of a situation that includes enough of the key features to be useful. b. It is always based on a mathematical formula
c. It is a physical representation of a real world situation in a laboratory. d. It is always named after the economist who devises it.