Which statement is true?
A. An effective price ceiling is above equilibrium price and causes surpluses.
B. An effective price ceiling is above equilibrium price and causes shortages.
C. An effective price ceiling is below equilibrium price and causes surpluses.
D. An effective price ceiling is below equilibrium price and causes shortages.
D. An effective price ceiling is below equilibrium price and causes shortages.
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How do economists view positive statements?
a. affirmative, justifying existing economic policy b. optimistic, putting the best possible interpretation on things c. descriptive, making a claim about how the world is d. prescriptive, making a claim about how the world ought to be
When variable inputs are added to a fixed input
A) output increases. B) output can increase at an increasing rate. C) output can increase at a decreasing rate. D) all of these choices are possible.