If the government implements a price ceiling on insulin, this will
A) decrease the quantity of insulin the manufacturers will be willing to supply.
B) encourage manufacturers to produce and sell more insulin to increase their profits.
C) have to be set above the market equilibrium price to be effective.
D) increase the price consumers will pay for insulin.
A
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In June 2008, the dollar bought 1.6 Brazilian reals and in October, the dollar bought 2.4 reals. This resulted in a
A) a movement upward along the supply curve for dollars. B) a movement downward along the supply curve for dollars. C) rightward shift in the supply curve for dollars. D) leftward shift in the supply curve for dollars.
Higher prices
a. are always against the public interest. b. may sometimes serve the public interest. c. should never be allowed. d. occur automatically for abundant goods.
Cashing out capital gains in Virtual Currency System #3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
a. Monetary base to fall. b. M2 money supply to fall. c. M2 money multiplier to remain the same. d. M2 money supply to rise.
The empirical evidence finds that large downward movements in wages are ________.
A. extremely rare B. common in some industries but not others C. very common D. common only in Europe