Nonprice rationing devices are required
A) because the price system does not allocate resources efficiently.
B) when there are price floors but not when there are price ceilings.
C) so that prices will go back to equilibrium.
D) to allocate goods when there is a price ceiling.
Answer: D
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If the United States imposes a tariff on the import of Japanese cars instead of a quota, the price
A. increase in Japanese cars goes into the revenue of U.S. automakers. B. increase in Japanese cars goes into the revenue of Japanese automakers. C. increase in Japanese cars goes into the revenue of the U.S. government. D. decrease in Japanese cars comes out of the revenue of U.S. automakers. E. decrease in Japanese cars comes out of the revenue of the U.S. government.
Which of the following can make the unemployment rate fall?
A. A decrease in the number of people who are looking for work. B. An increase in the number of people with jobs. C. A decrease in the number of people who are looking for work and an increase in the number of people with jobs. D. An increase in the number of people neither working nor looking for work.
All else equal, if the demand for capital decreases and the supply of capital does not change, the equilibrium real rental cost of capital will ________ and the equilibrium quantity of capital will ________
A) increase; increase B) decrease; not change C) decrease; decrease D) not change; decrease
The Federal Trade Commission regulates which of the following?
A) unfair trade practices by businesses B) financial markets C) trade with third world countries D) the banking industry