If the government removes a binding price floor from a market, then the price received by sellers will
a. decrease, and the quantity exchanged in the market will decrease.
b. decrease, and the quantity exchanged in the market will increase.
c. increase, and the quantity exchanged in the market will decrease.
d. increase, and the quantity exchanged in the market will increase.
b
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According to the quantity theory of money, which one of the following economic variables would change in response to an increase in the money supply?
a. prices b. real income c. velocity d. employment
Oceania buys $100 of wine from Escudia and Escudia buys $80 of wool from Oceania. Suppose this is the only trade that these countries do. What are the net exports of Oceania and Escudia, in that order?
a. $80 and $100 b. $-20 and $20 c. $20 and -$20 d. None of the above is correct.
A dominant strategy is a strategy that:
A. describes a set of circumstances in which no player can improve her payoff by unilaterally changing her own strategy, given the other players' strategies. B. results in the highest payoff to a player regardless of the opponent's action. C. randomizes over two or more available actions in order to keep rivals from being able to predict a player's action. D. guarantees the highest payoff given the worst possible scenario.
A decrease in input prices will cause
A. AS to increase (move down and to the right). B. AS to decrease (move up and to the left). C. AD to decrease (move to the left). D. AD to increase (move to the right).