The benefit of a price ceiling to ________ is ________.
A. producers; the selling price of the product is above the equilibrium price
B. producers; the ceiling creates excess demand
C. consumers; the ceiling creates excess supply
D. consumers; the selling price of the product is below the equilibrium price
Answer: D
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Which of the following statement is FALSE?
a) Imports and exports account for over one-half of the GDP of the Netherlands. b) Japan is less dependent on foreign trade than is the United States. c) Because the cost of labor used on farms is so high, the United States exports very little of its wheat, rice, and corn crops. d) China is the leading exporting country, accounting for 12.1 percent of total world exports.
Under a "cost-plus" system of hospital reimbursement, hospitals have the incentive to _____
a. minimize expenditures b. purchase the most recent high-tech equipment c. release patients early d. shift away from more expensive surgeries
According to the Taylor rule, if inflation equals 4 percent and there is a recessionary gap equal to 4 percent of potential output, the Fed will set a real interest rate of ________ percent and a nominal interest rate of ________ percent.
A. 4; 4 B. 2; 4 C. 1; 5 D. 1; 4
In a market where one unit of labor produces one unit of output, consumers prefer
A) a competitive labor market and a monopoly output market. B) a competitive output market and a monopoly labor market. C) a monopoly output market and a monopoly labor market. D) None of the above—they are indifferent between A and B.