Higher prices
A. are always against the public interest.
B. may sometimes serve the public interest.
C. should never be allowed.
D. occur automatically for abundant goods.
Answer: B
You might also like to view...
What is meant by the "law of one price"? In discussing the law of demand, Hubbard and O'Brien claim there has been no evidence of an exception to the law (that is, no evidence of an upward-sloping demand curve)
Are there exceptions to the law of one price?
As a result of firms leaving an industry, we would expect that: a. economic profits are positive
b. as a result, economic losses are falling. c. as a result, economic losses are rising. d. both (a) and (b) are true.
The record of all transactions with foreign nations that involve the exchange of merchandise goods and services or unilateral gifts is called the
a. capital account. b. current account. c. balance of trade. d. balance of payments.
The forward exchange rate:
A. is the same as the spot rate. B. is the rate at which foreign exchange dealers are willing to commit today to buying or selling a currency in the future. C. is a synonymous term for the nominal exchange rate. D. is always above the spot rate since it carries greater risk.