To have an effect on the market, a price floor should be set at a price
A. above the equilibrium price.
B. equal to the equilibrium price.
C. below the equilibrium price.
D. at any price on the supply curve.
Answer: A
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When we compare shares of income earned by U.S. households, which of the following statements about the distribution of income is true?
A) Shares of income decrease as we move from the lowest quintile to the highest quintile. B) Shares of income increase as we move from the lowest quintile to the highest quintile. C) Shares of income remain fairly constant as we move from the lowest quintile to the highest quintile. D) Shares of income decrease as we move from the lowest quintile to middle quintile, and then decrease from the middle quintile to the highest quintile.
Compared to LDCs, NICs have relatively _____ per capita GDPs.
Fill in the blank(s) with the appropriate word(s).
Which of the following is NOT a true statement about industrial policies?
A) Industrial policies can lead to the development of successful industries. B) Not all industrial policies are successful. C) Not all industrial policies are the best use of a nation's resources. D) Most industrial policies are legal under WTO rules.
Exchange rates are particularly important because:
A. they present a challenge to financial speculators. B. they link the price levels of various nations to one another. C. they represent exceptions to the laws of demand and supply. D. equilibrium is never achieved in such markets.