When a binding price floor is imposed on a market,
a. price no longer serves as a rationing device
b. the quantity demanded at the price floor exceeds the quantity that would have been demanded without the price floor.
c. all sellers benefit.
d. All of the above are correct.
a
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If the quantity of money supplied exceeds the quantity of money demanded, at a point in time: a. the price level in the economy will fall
b. the equilibrium interest rate will fall. c. the equilibrium interest rate will fall. d. the money demand curve will shift to the right. e. the money demand curve will shift to the left.
In an attempt to reduce poaching of elephant tusks for ivory, officials in Kenya burned illegally gathered ivory. Economists tend to point out that
a. poaching can be reduced with price supports for ivory. b. the supply of ivory has fallen, leading to an increase in price and reward for poaching. c. burning ivory decreases demand, leading to lower prices and reward for poaching. d. the demand for ivory is higher, leading to an increase in price and reward for poaching. e. burning ivory raises demand, and controlled prices will lead to even greater poaching.
When an economy is producing efficiently, it is
A. Getting the maximum goods and services possible from the available resources. B. Producing equal amounts of all goods. C. Experiencing decreasing opportunity costs. D. Producing a combination of goods and services beyond the production possibilities curve.
The most-favored-nation clause in U.S. trade agreements:
A. Gives special favors to Canada and Mexico because these nations border the United Sates B. Provides a comparative advantage in trade to those nations that have higher domestic opportunity costs in producing a product C. Means that lower tariffs negotiated with one nation with most-favored-nation status also apply to other nations with most-favored-nation status D. Offers favorable treatment to less developed nations to help improve economic growth in their economies