If the government imposes a price floor above the equilibrium price,
a. producers will eventually go out of business
b. market equilibrium will result
c. there will be an excess demand
d. consumers will benefit
e. producers will benefit
E
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A person holding dollar deposits during the devaluation of the dollar would
A) enjoy a monetary gain. B) see the foreign currency value of dollar assets increase by the amount of the exchange rate change. C) shift their wealth into domestic investments. D) suffer a monetary loss and see the foreign currency value of dollar assets decrease by the amount of the exchange rate change. E) see no change in their investments.
The government imposes a unit excise tax on bubble gum. What happens as a result?
A) The equilibrium quantity of bubble gum increases. B) At the original market price, there will be a bubble gum surplus so price decreases. C) At the original market price, there is a bubble gum shortage and so price rises. D) There will be no change in either the market price or equilibrium quantity as long as the excise tax rate is 5 percent or less.
The construction of a price index is complicated by several factors, including changes in the quality of goods and services over time, the introduction of new products, and the disappearance of old, outmoded products
a. True b. False Indicate whether the statement is true or false
A country must have a positive net outflow of capital if it has a trade deficit
a. True b. False Indicate whether the statement is true or false