Econ Chapter 6
A price floor is a legislated minimum price that is below the equilibrium price
False
Before 1989 in the USSR, officials frequently set prices at market equilibrium
False
Price controls bring about more exchange than would exist without them
False
The reason you don't see scalpers at starbucks is because there are laws to prohibit scalping coffee
False
The winning combination for a high salary is high supply and low demand for a job
False
equilibrium exists in all markets, all the time
False
I didn't add the graphs to this quizlet so you should...
Study them on your own
price controls..
decrease the amount of exchange that occurs
In general, no matter where you go in the US, the price of a loaf of bread is approximately the same
True
Price could eliminate freeway congestion during heavy travel times when traffic jams are experienced
True
Price directs the allocation of resources away from some goods, toward others
True
an auction would be a good way to describe markets in the US
True
a price floor results in
a shortage
at the equilibrium price, which of the following is true?
buyers and sellers are satisfied, buyers have bought everything they wanted to buy, sellers have sold everything they wanted to sell
a legal maximum price at which good can be sold is a..
price ceiling
in a free enterprise market, who or what allocates resources?
prices
which is true when there is a shortage in the market
prices may rise
inventory includes which of the following..
stock on hand
Equilibrium price is
the price that occurs when the quantity demanded is equal to the quantity supplied
if there were a shortage of nurses, we would expect..
the wages of nurses to increase
if a greater supply of labor were combined with decrease demand for labor, we might expect
wages to fall
if all else remains the same, a decrease in the demand for a good..
will decrease the price