Suppose a market is in equilibrium, and then a price ceiling is imposed at the equilibrium price. Which of the following will happen?
a. Quantity demanded will decrease.
b. An excess supply will develop at the price ceiling level.
c. An excess demand will develop at the old equilibrium price level.
d. There will be no change in price or quantity bought and sold.
e. The market will no longer be in equilibrium.
D
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Refer to Figure 2-11. What is the opportunity cost of producing 1 pound of cashews in Indonesia?
A) 3/8 of a bolt of cotton B) 5/8 of a bolt of cotton C) 2 2/3 bolts of cotton D) 320 bolts of cotton
If you are buying a bond that is newly issued by the corporation, you are buying it in the primary market.
Answer the following statement true (T) or false (F)
The crowding out effect refers to
A. the reinforcing impact of state and local tax changes on federal tax changes. B. an increase in the interest rate caused by government borrowing. C. a permanent increase in taxes. D. the impact of a tax rate increase when the aggregate supply function is horizontal.
Consider a competitive industry and a price-taking firm that produces in that industry. The market demand and supply functions are estimated to be: Demand: Qd = 10,000 ? 10,000P + 1.0MSupply: Qs = 80,000 + 10,000P ? 4,000PIwhere Q is quantity, P is the price of the product, M is income, and PI is the input price. The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and PI for 2015:
= $50,000 and 
I = $20The manager also estimates the average variable cost function to beAVC = 3.0 ?
0.0027Q + 0.0000009Q2Total fixed costs will be $2,000 in 2015. What is the price forecast for 2015? A. $2.50 B. $3 C. $2 D. $2.75 E. none of the above