Suppose that the government sets a minimum price for soybeans at $5 a pound above the equilibrium price. This leads to a quantity traded:
A. at the equilibrium quantity.
B. below the equilibrium quantity.
C. above the equilibrium quantity.
D. There is not sufficient information.
Answer: B
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If inflation in the United States is higher than in Japan, what will happen to the exchange rate between the U.S. dollar and the Japanese yen?
A. The dollar and yen will both depreciate. B. The dollar and yen will both appreciate. C. The dollar will depreciate and the yen will appreciate. D. The dollar will appreciate and the yen will depreciate.
Which of the following is not an example of agenda control?
a. The assignment of members of Congress to committees. b. Determination of the ballot language of a tax-and-expenditure limitation initiative. c. Special interests deciding which members of Congress deserve their attention. d. The majority caucus decides who can run for Speaker of the House of Representatives.
For an increasing cost industry, the long-run supply curve has a(n) _____ elasticity of supply
a. infinite b. negative c. positive d. zero
Suppose that a large dairy farmer is able to raise the market price of milk by withholding milk supply from the market. In this instance,
a. the milk market is perfectly competitive b. buyers will decrease their demand for milk c. buyers will increase their demand for milk d. the milk market is imperfectly competitive e. the milk market will collapse in the long run