In a free market for depletable natural resources, any shortage where there is an excess of quantity demanded over quantity supplied must be
A. temporary.
B. due to a price floor.
C. the result of discovery of new deposits of the resources.
D. due to a price ceiling.
Answer: D
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The theory of purchasing power parity suggests that, in the long-run, exchange rates are determined by ________
A) relative interest rate levels B) relative price levels C) the GDP values for the two countries D) the most significant monetary authorities, including the Federal Reserve, European Central Bank, Bank of England and the Bank of Japan
If the multiplier equals 2 and the AD shortfall is $6 million, the desired fiscal stimulus is
A. $12 million. B. $333,333. C. $6 million. D. $3 million.
Suppose the consumer price index was 184 in 2009 and 198.17 in 2010 . The nominal interest rate during this period was 5.8 percent. What was the real interest rate during this period?
a. 0.4 percent b. 1.2 percent c. –1.9 percent d. –2.6 percent
Monetary policy operations for central banks are run through changes in the liability category of:
A. currency. B. government's accounts. C. gold. D. reserves.