A price ceiling is
A) the lowest price a seller can charge for a good without losing all her customers.
B) a legal minimum price that can be charged for a particular good or service.
C) a legal maximum price that can be charged for a particular good or service.
D) the lowest price a buyer can pay for a good without having to report the purchase to the government.
Answer: C
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Other things the same, if the Fed increases the quantity of money, the ________ because ________
A) nominal interest rate decreases; the supply of money curve shifts rightward B) nominal interest rate increases; the supply of money curve shifts rightward C) nominal interest rate does not change; only the real interest rate is effected D) nominal interest rate decreases; the supply of money curve shifts leftward E) nominal interest rate increases; the supply of money curve shifts leftward
Samantha is given a flu shot by her doctor. This reduces the probability that she will get the flu and it also reduces the probability that others will get the flu, too. The latter is an example of a
A. negative externality. B. positive externality. C. substitute good. D. complementary good.
Physical capital is:
A. the set of skills, knowledge, experience, and talent that determine the productivity of workers. B. the skills a human being acquires that enhances the available stock of equipment. C. the stock of equipment and structures that allow for the production of goods and services. D. All of these describe physical capital.
According to real-business-cycle theory, recessions are caused by:
A. Deviations of aggregate supply from long-term growth trends B. Monetary factors affecting aggregate demand C. People choosing leisure rather than work D. A decline in the supply of money