Assume there is a price ceiling imposed on a good which is below the equilibrium price. Which of the following changes would reduce the size of the shortage?
a. an increase in demand
b. a decrease in demand
c. a decrease in supply
d. a lower price ceiling
b
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The difference between bid (buying) rates and ask (selling) rates is called the
A) profit. B) arbitrage. C) spread. D) forward transaction.
Suppose that initially there is no public debt. Using the above table, what is the public debt as a percentage of GDP in Year 4?
A) 5.8 percent B) 7.8 percent C) 3.6 percent D) 2.0 percent
A movie producer has to decide to fund a new movie project. For this project, a success would earn $20 million and a failure would cost $60 million in lost profits. At what probability of expected success should he fund the movie?
a. 0.20 b. 0.25 c. 0.50 d. 0.75
Between 1975 and 2011, the wage gap between men with a high school education and men with a college education increased. In particular, in 2011 men with a college degree earned about
a. 10% more than men with a high school education. b. 25% more than men with a high school education. c. 75% more than men with a high school education. d. 90% more than men with a high school education.