When the market clearing price of gasoline after a hurricane spikes to $6.00 but legislators enact "anti-gouging" legislation that keeps prices at $4,
A) consumers as a whole will tend to benefit.
B) producers will have less incentive to bring gasoline to the areas where gasoline is most highly valued.
C) government will ensure that no shortages will develo
B
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All else equal, increases in oil prices tend to increase the quantity of proven oil reserves
Indicate whether the statement is true or false
Which of the following will cause a change in the supply of a product?
a. a change in the price of suppliers' inputs b. a change in the price of alternative goods that could be produced with the same resources c. a change in the expected future price of the product d. all of the above
If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Price index falls, and real GDP falls. b. Price index falls, and the change in real GDP is uncertain. c. The change in price index is uncertain, and real GDP rises. d. The change in price index is uncertain, and real GDP falls. e. Neither the price index nor real GDP changes.
You have been promised a payment of $400 in the future. In which of the following cases is the present value of this payment the lowest?
a. You receive the payment 4 years from now and the interest rate is 4 percent. b. You receive the payment 4 years from now and the interest rate is 5 percent. c. You receive the payment 5 years from now and the interest rate is 4 percent. d. You receive the payment 5 years from now and the interest rate is 5 percent.