A price ceiling is non-binding when:
A. it is set above the equilibrium price.
B. it reduces the output in a market.
C. it increases the output in a market.
D. it is set below the equilibrium price.
Answer: A
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The above gives some of the balance of payments accounts of the United States in 2020
a) What is the current account balance? b) What is the capital account balance? c) What is the official settlements account balance?
A legal arrangement characterized by preferential treatment of export industries is
a. export orientation b. export processing zone c. customs union d. effective protection e. none of the above
Dynamic tax analysis assumes
A) all of the present tax rates will be in place for a minimum of twenty years. B) changes in the tax rates have no effect on the tax base. C) changes in the tax rates have no effect on tax revenue. D) changes in the tax rates will change the tax base.
Under a fixed exchange rate system, a government is at risk of running out of foreign currency reserves when the country's imports continue to exceed its exports
Indicate whether the statement is true or false