Which of the following is NOT a predictable result of a price ceiling set below the market clearing? price?

Suppose the quantity of bonds demanded exceeds the quantity supplied at a given interest rate. What will happen to restore equilibrium?

a. Bond prices will increase and the interest rate will rise. b. Bond prices will decrease and the interest rate will fall. c. Bond prices will increase and the interest rate will fall. d. Bond prices will decrease and the interest rate will rise. e. Bond prices will increase and the interest rate will stay the same, as bond prices are independent of the interest rate.

If a country is an exporter of a good, then it must be the case that

a. the world price is less than its domestic price. b. consumer surplus is higher than a no trade situation. c. the world price is greater than its domestic price. d. they used an infant-industry argument to protect its producers.

Which of the following statements is correct?

a. Strategic situations are more likely to arise when the number of decision-makers is very large rather than very small. b. Strategic situations are more likely to arise in monopolistically competitive markets than in oligopolistic markets. c. Game theory is useful in understanding certain business decisions, but it is not really applicable to ordinary games such as chess or tic-tac-toe. d. Game theory is not necessary for understanding competitive or monopoly markets.

If Luke can bake bread at a lower opportunity cost than Jason, and Jason can produce paintings at a lower opportunity cost than Luke, it follows that

A) Luke has a comparative advantage in paintings and Jason has a comparative advantage in baking bread. B) Both Luke and Jason have a comparative advantage in baking bread. C) Both Luke and Jason have a comparative disadvantage in producing paintings. D) Luke has a comparative advantage in baking bread and Jason has a comparative advantage in producing paintings. E) There is not enough information to answer the question.