If the government imposes a price floor at $10 (i.e. the price must be $10 or higher) in the above market, how many goods will be traded?
a. Four
b. Five
c. Six
d. Seven
b
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If the underground economy is sizable, then GDP will:
a. accurately reflect this subterranean activity. b. overstate the economy's performance. c. understate the economy's performance. d. fluctuate unpredictably.
The payment of interest not only on the original deposit, but on all previously accumulated interest is called:
A. simple interest. B. the real interest rate. C. the nominal interest rate. D. compound interest.
Four points on a demand schedule are given: $12, 2 units; $10, 3 unit; $15, 5 units; and $2, 4 units. Which combination is inconsistent with the law of demand?
A) $12 and 2 units B) $10 and 3 unit C) $15 and 5 units D) $2 and 4 units
One way to cope with chronic excess demand is to
a. simply give the goods away for free b. force parity between the quantity demanded and the quantity supplied c. issue ration coupons for the quantity supplied d. lower the price ceiling e. impose crop limitations