If the equilibrium price of good X is $5 and a price ceiling is imposed at $4, the result will be a(n):
A. accumulation of inventories of unsold gas.
B. shortage.
C. surplus.
D. quantity supplied that exceeds the quantity demanded.
Answer: B
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When policy makers attempt to focus on internal balance, they
A) must be talking only about domestic goals. B) must be talking about domestic and international goals. C) must consider both domestic policy and trade. D) Any of the above might be considered internal balance.
Ramona has decided that she will only purchase a one-year Treasury bill with a face value of $15,000 if she receives an interest rate of 4.125%. How much will Ramona end up paying for this Treasury bill?
A) $12,447.66 B) $14,381.25 C) $14,405.76 D) $15,618.75
Which of the following is NOT a function of money?
A) medium of stored value B) standard of deferred payment C) unit of accounting D) store of value
A Portuguese company exchanges euros for $60,000 from a U.S. bank. The Portuguese firm then uses the dollars to purchase $60,000 of canning equipment from a U.S. company. As a result of these two transactions alone
a. both U.S. net capital outflow and U.S. net exports rise. b. U.S. net capital outflow rose and U.S. net exports fall. c. U.S. net capital outflow fell and U.S. net exports rise. d. both U.S. net capital and U.S. net exports fall.