When several hurricanes hit Florida in 2004, a number of local governments imposed price controls that prevented sellers from raising their prices for badly needed products like plywood and generators. In the areas where the controls were imposed, they resulted in
a. an expanded availability of these badly needed products.
b. a reduced availability of these badly needed products.
c. an increase in the speed with which people recovered from the hurricanes.
d. a more efficient allocation of these goods for which price controls were in effect.
B
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A) an expectation of higher future profits B) an expectation of higher future costs C) an increase in business taxes D) an increase in the interest rate
Regardless of the size of wealth and substitution effects for workers, the benefit of a wage subsidy will accrue disproportionately to workers if the labor supply curve is relatively more wage-inelastic than the labor demand curve.
Answer the following statement true (T) or false (F)
Which of the following are examples of goods that have been subject to voluntary export restraints?
A) Japanese cars and Chinese solar panels B) Belgian chocolates and French wines C) French wines and cheeses D) Japanese sushi and German cars E) Taiwanese electronics and Canadian barley
Which of the following appears on the liability side of the Fed's balance sheet?
a. Federal Reserve notes. b. U.S. government securities. c. Loans to banks. d. All of these.