Price ceilings and price floors:
A. make the rationing function of markets more efficient.
B. interfere with the allocation function of prices.
C. cause surpluses and shortages in markets respectively.
D. cause demand and supply curves to shift thus having no effect on the rationing function of prices.
Answer: B
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Which of the following is the most open economy?
a. Germany b. the Netherlands c. the United States d. Japan e. Canada
Which of the following forms of payment is NOT an incentive plan?
A. Flat salary for a plant manager B. Bonuses for managers that increase as profits increase C. Commission plans for salesmen D. None of the statements is correct.
Transactions costs are the
A) costs of using the Coase theorem. B) opportunity costs of conducting a transaction. C) external marginal costs of the externality. D) reason why taxes cannot affect the inefficiency resulting from an external cost. E) external costs when a firm pollutes.
Which of the following is a possible benefit of international macroeconomic policy coordination?
A. International macroeconomic policy coordination builds a forum where developing countries can come up with a common political agenda. B. International macroeconomic policy coordination helps stronger countries impose their prescribed economic policies on weaker countries. C. International macroeconomic policy coordination gives countries the opportunity to consider spillover effects on other countries that arise from interdependence. D. International macroeconomic policy coordination gives countries the political cover to abolish import tariffs and export taxes.