A parallel or black market often arises as a result of which of the following?
A. High domestic interest rates
B. Exchange controls
C. Floating exchange rate regime
D. Official intervention
Answer: B
You might also like to view...
The above figure shows a perfectly competitive firm. If the market price is $5 per unit, the firm
A) will definitely shut down to minimize its losses. B) will stay open to produce and will make zero economic profit. C) will stay open to produce and will incur an economic loss. D) will stay open to produce and will make an economic profit. E) might shut down but more information is needed about the fixed cost.
Cooperation that continues as long as the players continue to cooperate is
A) a zero-sum game. B) a negative-sum game. C) tit-for-tat strategic behavior. D) opportunistic behavior.
Which of the following does not explain why data on income distribution and the poverty rate give an incomplete picture of inequality?
a. in-kind transfers b. economic life cycle c. transitory income d. All of the above contribute to an incomplete picture of inequality.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.