Which of the following is not an example of a price ceiling?
a. The Chinese government sets the price of housing in China below equilibrium.
b. The government of the former Soviet Union sets the price on food below those prevailing in the free market.
c. In the 1970s, the Nixon administration imposed wage and price controls, thereby keeping wages and prices from rising.
d. In the late 1970s, the U.S. government required gasoline to be sold at a price per gallon that was below what would have prevailed in a free market.
e. The U.S. government requires that sugar be sold at a price that exceeds the world price of sugar.
e
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With the followings is NOT one of the reasons why quantitative easing in and of itself will not necessarily be stimulative?
A) Most of the resulting increase in the monetary base just flows into holdings of excess reserves. B) Banks just add to their holdings of excess reserves instead of making loans. C) The asset purchase program involves only the purchase of short-term government securities. D) The asset purchase program involves only the purchase of long-term government securities.
The traditional industrial policy of import substitution:
A. has been successful for those countries that managed to pick the "right" industries. B. has been successful for the great majority of countries. C. is generally unsuccessful in the real world. D. is used by most countries with some degree of success.
Assume that the demand for paper products increases. Then, we expect that the
a. demand for trees will also increase. b. demand for trees will stay the same. c. demand for trees will decrease. d. effect on the demand for trees is uncertain; it depends on the elasticity of the demand for paper.
In year 1 the CPI is 175, and in year 2 the CPI is 189. If Dennis's salary was $82,000 in year 1, what is the minimum salary he must earn in year 2 to "keep up with inflation"?
a. $83,550 b. $92,360 c. $85,750 d. $88,560