Price ceilings are intended to address the problem of
A. Business bankruptcies.
B. Inefficiency in production.
C. Inequity in the distribution of goods and services.
D. Shortages.
Answer: C
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If you hold a bond at a time when market interest rates are increasing, you will find that the bond's value has
a. remained the same since the interest payment remains constant b. increased c. increased only if the market interest rate exceeds the interest rate payable on the bond d. declined because you will receive a lower price when you sell the bond e. increased only if the interest payable on the bond exceeds the market interest rate
The North American Free Trade Agreement (NAFTA)
a. involves the United States, Canada, and Mexico b. did not increase the volume of trade among the countries of North America c. was negotiated after President Obama took office d. failed to acknowledge environmental protection in its trade propositions
Answer the following questions:
a. What is the difference between gross domestic product and gross national product? b. Give an example of a transaction that would be counted in GDP but not in GNP. c. Give an example of a transaction that would be counted in GNP but not GDP.
An imperfection in the market mechanism that prevents optimal outcomes is called
A. Price leadership. B. Collusion. C. Antitrust behavior. D. Market failure.