Which of the following statements are true? (Check all that apply.)
A. Equilibrium is attained when prices are allowed to respond to market pressure.
B. A binding price ceiling will always cause the quantity demanded to exceed the quantity suppled.
C. A government price control can be used to bring markets into equilibrium.
D. A government price control will always cause the quantity demanded to exceed the quantity supplied.
A. Equilibrium is attained when prices are allowed to respond to market pressure.
B. A binding price ceiling will always cause the quantity demanded to exceed the quantity suppled.
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Where large amounts of capital are used, the dominant form of business organization is the
A) corporation. B) partnership. C) proprietorship. D) partnership in manufacturing and the corporation in finance.
The number of highly skilled and knowledge workers entering the workforce increases when
(a) firms substitute capital for high priced labor. (b) the market demands labor with advanced degrees. (c) the government cuts educational funding. (d) All of the above
_________________ —a term describing a good in which the quantity demanded falls as income rises and in which quantity demanded rises and income falls.
a. Complement good b. Inferior good c. Normal good d. Superior good
A . What are foreign exchange reserves? b. What actions can a government take if it exhausts its foreign exchange reserves?