If a price ceiling is not binding, then it will have no effect on the market
a. True
b. False
Indicate whether the statement is true or false
True
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Technological efficiency, defined in terms of completely objective relationships,
A) has no useful meaning. B) influences the decisions of engineers but not of business executives. C) influences the decisions of engineers but not of economists. D) is more important in the long run than in the short run, where profitability tends to dominate decisions.
If the exchange rate is above equilibrium, there will be ________ in the foreign exchange market
A) a surplus B) a shortage C) a decrease in the demand for domestic currency D) an increase in the demand for domestic currency
In the second half of the 1990s a rapidly growing movement focused on the harm caused by international trade to
A) land owners in poor countries. B) capital owners in rich industrialized countries. C) land owners in rich industrialized countries. D) production workers in both rich and poor countries. E) terms of trade in developing countries.
In the simple Keynesian model, if there is an autonomous investment falls by $20 billion and the MPC (b) is 0.60, the equilibrium income level will increase by
a. $13.3 billion. b. $20 billion. c. $50 billion. d. $100 billion.