If the government establishes a price floor at 75 percent of parity, this would imply that
a. price ceilings on farm goods must be 125 percent of parity
b. price ceilings on farm goods must be 25 percent of parity
c. farm prices can be no less than 75 percent of their 1910–1914 level
d. farm prices can only rise to 75 percent of their 1910–1914 level
e. farmers' purchasing power will be no less than 75 percent of 1910–1914 purchasing power
E
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Assume a simplified banking system subject to a 20 percent required reserve ratio. If there is an initial increase in excess reserves of $100,000, the money supply
A. increases $100,000. B. increases $500,000. C. increases $600,000. D. decreases $500,000.
In the figure above, the expected inflation rate is
A) 6 percent. B) 0 percent. C) 2 percent. D) 8 percent. E) 4 percent.
A pharmaceutical company hired two analysts to independently calculate the elasticity of supply of its product. According to Analyst A, the price elasticity of supply for the company is 0.36, and according to Analyst B, the price elasticity of supply is 0.88 . Assuming that neither analyst has made a mistake in calculations, it can be concluded that: a. Analyst A studied the data for a longer
period of time than Analyst B. b. Analyst A studied the data for a shorter period of time than Analyst B. c. the data provided by the company had variations in it. d. the average of the two values can provide the accurate price elasticity of supply.
Arrow's impossibility theorem shows that no voting system can satisfy which of the following properties?
a. unanimity and transitivity only b. transitivity and independence of irrelevant alternatives only c. no dictators and transitivity only d. unanimity, transitivity, independence of irrelevant alternatives, and no dictators