If the government imposes a price floor above the market equilibrium price, then:
a. b and e.
b. there will be excess supply.
c. there will be excess demand.
d. consumers will benefit.
e. producers will benefit.
a
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The AD curve shifts to the right with a __________ in government purchases (G) or a __________ in taxes
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Suppose the dry cleaning industry is initially in long-run equilibrium but then experiences a sharp increase in the price of its inputs. Assuming that the industry is perfectly competitive, the increase in costs should:
A. decrease the number of firms in the industry in the long run and raise the market price. B. increase the number of firms in the industry in the industry and raise the market price. C. increase the number of firms in the industry in the industry and reduce the market price. D. decrease the number of firms in the industry in the long run and reduce the market price.
Starting with the Great Depression, macroeconomic policies became more influenced by
A. supply-side theories. B. Marxist theories. C. Classical theories. D. Keynes' theories.
The following situation is an example of an import substitution strategy. Costa Rica has a comparative advantage in the production of coffee and, as a result, the Costa Rican government grants incentives to coffee planters to improve their performance in the international marketplace.
Answer the following statement true (T) or false (F)