Which of the following statements is FALSE?
a. The rationing function of prices is not allowed to freely operate when the government imposes price controls.
b. Price controls may take the form of price ceilings or price floors.
c. Price ceilings below the equilibrium price can cause black markets to develop.
d. Rent controls are examples of price floors.
d. Rent controls are examples of price floors.
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The sum of the current account, capital and financial account, and official settlements account is
A) a positive number if the country has a trade surplus. B) a negative number if the country has a trade deficit. C) positive or negative depending on whether the domestic exchange rate is appreciating or depreciating. D) always equal to zero.
If the marginal propensity to save (MPS) is 1/8, the value of the simple spending multiplier is: a. 8
b. 1/8. c. 2. d. 1/2. e. 4.
What act established a body to help enforce antitrust laws?
a. Security and Exchange Commission Act b. Judicial Trust Commission Act c. Federal Trade Commission Act d. The Senate Oversight Committee Act
If this firm were a perfect competitor selling its entire output at a price of $1, the marginal revenue product of the third unit of input would be
A. $0.
B. $1.
C. $2.
D. $3.