For a price ceiling to have an impact on a market it:
A. must be set at the equilibrium price.
B. must be set below the equilibrium price.
C. can lead more goods to be produced in a market.
D. must be set above the equilibrium price.
Answer: B
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If a firm faces a downward-sloping demand curve, then:
A. the firm could be either a perfectly competitive firm or an imperfectly firm. B. the firm's production process exhibits economies of scale. C. the firm's marginal revenue from selling an additional unit of output is less than price. D. it is a perfectly competitive firm.
Which of the following resources will a producer demand another unit of so long as the additional unit's marginal revenue exceeds its marginal cost?
a. labor b. capital c. natural resources d. entrepreneurial ability e. All of the answers are correct.
Other things being equal, an increase in U.S. interest rates would be likely to cause an increase in the capital account surplus or a decrease in the capital account deficit
a. True b. False Indicate whether the statement is true or false
An increase in the nominal interest rate, all else held constant, will always cause which of the following?
A) the real interest rate to decrease B) the expected inflation rate to decrease C) the demand for money to increase D) all of the above E) none of the above