Suppose Congress passes a law that states the price of gasoline may not exceed $6 per gallon (but may be lower)
If the current price of gasoline is less than $6, what impact does this law have on the current price and quantity of gasoline in the US market? A) There is a shortage of gasoline
B) There is a surplus of gasoline
C) Quantity supplied currently equals quantity demanded, but a surplus is possible at prices above $6
D) The law currently has no impact, and the market clears at the equilibrium price
D
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The new growth theory attempts to explain
a. the rate of population growth within a country. b. the rate of capital accumulation within a country. c. the factors that determine the size of the Solow residual. d. why there are diminishing returns to capital.
Figure 33.2 illustrates Lorenz curves for four different economies. Which economy should have a Gini coefficient of zero?
A. A. B. B. C. C. D. D.
The ratio at which a country can exchange domestic products for imported products is called the terms of trade.
Answer the following statement true (T) or false (F)
From Figure 6-2, we can determine that demand is ____ between P = 12 and P = 10 and ____ between P = 6 and P = 4.
A. elastic; elastic B. elastic; inelastic C. inelastic; elastic D. inelastic; inelastic