Which of the following is an accurate statement about price ceilings?
a. They often clarify price signals sent to consumers.
b. They often distort price signals sent to producers.
c. They often enable price signals to be sent to consumers.
d. They often prevent price signals from being sent to producers.
b. They often distort price signals sent to producers.
You might also like to view...
Drivers who enter an expressway during the rush hour create negative externalities whenever they
A) could have taken another route. B) drive under the speed limit. C) fail to yield as they merge. D) have no other passengers in their vehicles. E) inadvertently slow down all the drivers behind them.
Which of the following statements describes the situation for the United Kingdom at a real interest rate of 4 percent?
a. There is a capital inflow from the United States to the United Kingdom.
b. The quantity of loanable funds supplied by United Kingdom lenders is greater than the quantity demanded by United Kingdom borrowers.
c. The interest rate is at the equilibrium level for the United Kingdom.
d. U.K. borrowing is greater than U.K. lending, and the excess is exported to the United States as a capital outflow.