A price ceiling set below the equilibrium price causes a shortage in the market
a. True
b. False
Indicate whether the statement is true or false
True
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A monopoly will always produce less than a purely competitive industry, ceteris paribus
a. true b. false
The net capital outflow is the net flow of:
A. capital goods owned outside a country. B. funds invested outside of a country. C. capital goods owned within a country. D. funds invested within a country.
A waitress brings a loaf of bread without charge when you sit down in a restaurant. This loaf of bread is
A. an economic good because the bread is a scarce resource, even if it is free to you. B. a bad because there is no price charged for the bread. C. a good, but not an economic good because there is no price charged for the bread. D. a service because the waitress carried it instead of making it.
Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will decrease. B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease. C) The dollar will appreciate, and the equilibrium quantity of dollars will increase. D) The dollar will depreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.