If the price ceiling is set above the equilibrium price,
A. there will be a surplus.
B. there will be a shortage.
C. quantity demanded will equal quantity supplied.
D. demand will be less than supply.
C. quantity demanded will equal quantity supplied.
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An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
Use the following graph to answer the next question.
In the graph, Dt is the transactions demand for money, Dm is the total demand for money, and Sm is the supply of money. The market is in equilibrium at the 6% rate of interest. If the money supply then decreases as shown, the transaction demand for money will change by
A. $0. B. $75. C. $175. D. $125.
Which of the following is FALSE?
a. Maximizing division profits can sometimes lead to reducing company-wide profits b. Managers of profit centers are never given any discretion in their decision making c. Profit centers usually largely run themselves d. A manager being rewarded on division revenues has the most incentive to make good decisions for his division
Critics of debt relief make all of the following arguments EXCEPT
A) it would be wasted money since the conditions that caused the debt would be likely to persist. B) countries with large foreign debts are poorly administered. C) debt relief can quickly fuel a new round of borrowing that simply restores debt to prior levels. D) debt relief will encourage other nations to borrow excessively with the hope that their debts may be forgiven in the future. E) the cost of debt relief to the most severely indebted countries is too large for the high income countries to afford.