If a product which costs $8 is sold at $10, the profit margin is
A) $2.
B) 25%.
C) 20%.
D) None of the above
C
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The excess supply created when governments impose a price floor is:
a. shrinking as the floor rises. b. the difference between the old quantity supplied and new quantity demanded. c. the difference between the new quantity supplied and the old quantity demanded. d. the difference between the new quantity supplied and the new quantity demanded. e. actually efficient because prices are higher for suppliers.
When an expansionary fiscal policy increases market interest rates and lowers gross private investment in an economy, it is called the: a. countercyclical effect. b. policy lag effect
c. multiplier effect. d. crowding out effect.
A decrease in Swiss interest rates will cause:
A. an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar. B. a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. C. an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. D. a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
Examples of external shocks are all of the following EXCEPT
A. drought. B. war. C. oil shock. D. U. S. federal tax policies.