A price ceiling is ______ if it is set _____ the market equilibrium price
A. efficient and fair; below
B. unfair but efficient; equal to
C. efficient and unfair; above
D. inefficient and unfair; below
D A price ceiling set below the equilibrium price creates ineffi-ciency and is unfair by both measures of fairness.
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Gross domestic product is the sum of the purchase price multiplied by the quantity of:
a. goods and services exchanged during the period. b. final goods and services produced domestically during the period. c. goods and services produced domestically during the period minus the depreciation of productive assets. d. final goods and services plus intermediate goods produced domestically during the period.
Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 deposit, then its required reserves balance will be:
a. $0. b. $90. c. $100. d. $900. e. $910