When there is a price ceiling there will be
A. a shortage.
B. a surplus.
C. either a shortage or a surplus.
D. neither a shortage nor a surplus.
A. a shortage.
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What is the major cost associated with fighting ongoing inflation?
a. Higher interest rates. b. Lost potential output. c. Lower price level. d. Higher price level. e. None of the above.
Suppose you observe an increase in the equilibrium price of coffee and a decrease in the equilibrium quantity of coffee. Of the options listed below, this is most consistent with:
A. a decrease in the cost of producing coffee. B. an increase in consumer income assuming coffee is a normal good. C. an increase in the cost of producing coffee. D. a decrease in consumer income assuming coffee is a normal good.
Mutual recognition of standards refers to
A) the elimination of tariffs and quotas by trading partners. B) common product safety, environment, labor, and fair competition standards agreed upon by trading partners. C) the acceptance or keeping of a trading partner's standards as valid and sufficient by another trading partner. D) separate standards held by different trading partners which other partners refuse to recognize.
If the interest rates available on investments in two countries were the same, you would be less likely to invest in assets of the country: a. whose currency was likely to appreciate
b. whose currency was likely to depreciate. c. whose currency had the greatest exchange value. d. none of the above; it would not matter what was likely to happen to a country's currency exchange rate.