Suppose that the federal government provides wheat farmers with a price floor above the market equilibrium price of wheat, creating a surplus. Which of the following causes a reduction in the surplus of wheat?
a. Elimination of the price floor.
b. An increase in the supply of wheat.
c. An increase in the price of wheat.
d. A decrease in the demand for wheat.
a
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Pizza Hut pizza has more close substitutes than does food in general. The price elasticity of demand for Pizza Hut pizza is ________ the price elasticity of demand for food in general
A) not comparable to B) greater than C) less than D) the same as
According to the liquidity premium theory of the term structure, a flat yield curve indicates that short-term interest rates are expected to
A) rise in the future. B) remain unchanged in the future. C) decline moderately in the future. D) decline sharply in the future.
As of the end of 1994 which of the countries in our survey had the smallest proportion of stock held by foreigners?
A) The United Kingdom B) The United States C) Japan D) Germany
If the prices of domestic consumer goods increased while the prices of imported consumer goods decreased, and the demand for each remained the same, which of the following would most likely occur?
a. The GDP price index would decrease while the CPI would increase. b. Both the GDP price index and the CPI would decrease. c. The GDP price index would increase more than the CPI. d. The CPI would increase more than the GDP price index. e. Both the GDP price index and the CPI would increase by the same amount.