If the government set a price floor at $18
A. there would be a temporary surplus, then prices would fall to equilibrium.
B. the price floor would not have any effect on this market.
C. then quantity demanded would be greater than quantity supplied.
D. there would be a permanent surplus, at least until the price floor was lifted.
B. the price floor would not have any effect on this market.
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As long as marginal cost is below average cost, average cost will be:
a. falling. b. rising. c. constant. d. changing in a direction that cannot be determined without more information.
A perfectly elastic supply curve
a. has no relevance, since real-world supply curves are never perfectly elastic b. is a horizontal straight line c. is a vertical straight line d. is an upward-sloping straight line e. is not a straight line
In a pure flexible exchange rate system, deficits and surpluses in the balance of payments: a. are accommodated by financial borrowings. b. are accommodated by reserve movements. c. tend to disappear automatically
d. either b. or c.
When the demand for a country's exports increases, its export function _____
a. shifts upward b. shifts downward c. rotates upward d. rotates downward