After a price floor of $23 is placed on the market in the graph shown:
A. some consumers lose because they pay a higher price.
B. some producers gain because they sell at a higher price.
C. the quantity traded in the market falls.
D. All of these are true.
D. All of these are true.
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All else held constant, which of the following is a necessary consequence of a depreciation of the U.S. dollar against other currencies?
A. U.S. exports will become cheaper relative to other nations' products. B. The terms of trade will move in favor of the United States. C. The United States will experience an increase in the volume of imports. D. International speculators will buy U.S. dollars and sell other currencies.
Which of the following statements is true?
A. The effect of a compensated price change = the substitution effect of the price change + the income effect of the price change. B. The effect of an uncompensated price change = the substitution effect of the price change - the income effect of the price change. C. The effect of an uncompensated price change = the income effect of the price change - the substitution effect of the price change. D. The effect of an uncompensated price change = the substitution effect of the price change + the income effect of the price change.
Refer to the graph shown. Assuming that the industry operates under conditions of perfect competition and that the firms seek to maximize profits, this firm will:
A. produce 1,200 square feet of construction in the short run. B. incur economic losses in the short run. C. produce 800 square feet of construction per month in the short run. D. produce 1,000 square feet of construction per month in the short run.
A reduction in the parameter c, the proportion of money individuals wish to hold as currency, will tend to cause which of the following?
A) an increase in the monetary base (H) B) a reduction in H C) an increase in the money multiplier D) a reduction in the money multiplier