To affect the market outcome, a price floor
A) must be set above the black market price.
B) must be set above the legal price.
C) must be set above the price ceiling.
D) must be set above the equilibrium price.
Answer: D
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When a student finishes college and begins looking for work
A) cyclical unemployment increases. B) structural unemployment increases. C) frictional unemployment increases. D) frictional and cyclical unemployment increase.
The total value of U.S. Treasury bonds outstanding equals
A) the federal government deficit. B) the cyclically adjusted budget deficit. C) the federal government surplus. D) the federal government debt.
In a contingent contract
A) the risk neutral party bears the risk. B) monitoring is not possible. C) the principal will be at a disadvantage. D) the payoffs are dependent upon another variable, such as revenue or profit.
If an increase in the price of Good X causes a decrease in the demand for Good Y, we can conclude that: a. Goods X and Y are complements. b. Goods X and Y are substitutes
c. Goods X and Y are normal goods. d. the price of Good Y will increase.