Governments tend to set price ceilings:
A. to prevent consumers from choosing the wrong goods.
B. to ensure producers make enough for everyone.
C. to ensure producers make enough profit to stay in the industry.
D. to ensure everyone can afford certain goods.
Answer: D
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If GDP per capita rises by 2% between 2015 and 2016, which of the following is necessarily true?
A) The population has increased, but by less than 2%. B) The population has decreased. C) Real GDP has risen by more than 2%. D) None of the above is necessarily true.
If the demand increases in a perfectly competitive market, the price will:
A. temporarily decrease. B. increase permanently. C. decrease permanently. D. temporarily increase.
"High-income countries have a price level which is much higher than the low-income countries." Which of the following is most likely to explain this price differential?
A. Prices of non-traded goods and services are relatively stable across high- and low-income nations. B. Traded goods are much more sensitive to the income levels than are non-traded goods and services. C. With the development process of a nation, its productivity in making traded goods rises much faster than that in making non-traded goods. D. Labor involved in production of non-traded goods and services in high-income nations receives lower wages than the labor-producing traded goods.
Which of the following groups of economists believe that cost-push inflation is impossible in the long run without excessive monetary growth?
A. Mainstream economists and monetarists. B. Mainstream economists and rational expectations economists. C. Monetarists and rational expectations economists. D. Mainstream economists, monetarists, and rational expectations economists.