Which of the following is true?
i. A price support is inefficient.
ii. A price floor set above the equilibrium price creates a surplus.
iii. A price ceiling set above the equilibrium price creates a black market.
A) only i
B) only ii
C) only iii
D) i and ii
E) ii and iii
D
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An increase the expected future price of a good
A) increases its demand. B) decreases its demand. C) increases its supply. D) has no effect on either its demand or its supply.
What is a multilateral trade pact? Discuss the first one that was formed and what its impact has been.
What will be an ideal response?
If the opportunity cost of producing a good domestically is less than the opportunity cost of purchasing it on the world market, a country can gain by
A. decreasing production and increasing exports. B. increasing production and decreasing imports. C. increasing production and decreasing exports. D. decreasing production and increasing imports.
If protective import-restricting quota are imposed by a country, all of the following groups benefit EXCEPT
A) domestic producers in the affected industry. B) domestic consumers in the affected industry. C) employees of domestic producers in the affected industry. D) importers that are able to obtain the rights to sell imported items in the affected industry.