Author Question: A binding price ceiling i. causes a surplus. ii. causes a shortage. iii. is set at a price above the ... (Read 61 times)

gonzo233 · **on:** Jun 30, 2018

A binding price ceiling i. causes a surplus. ii. causes a shortage. iii. is set at a price above the equilibrium price. iv. is set at a price below the equilibrium price.
a. (ii) only
b. (iv) only
c. (i) and (iii) only
d. (ii) and (iv) only

Question 2

Rapid inflation makes holding a large amount of money:
a. wiser, because you will generally need more and more to buy the goods and services you want.
b. less wise, because the opportunity cost of holding money is high.
c. less wise, because someone might steal it, or it might be destroyed.
d. wiser, because the opportunity cost of holding money is high.