Rent control is an example of
A) a price floor.
B) a price ceiling.
C) the rationing function of prices not working.
D) the government increasing the demand for certain products.
Answer: B
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The actual unemployment rate is equal to ________
A) the natural rate of unemployment plus the cyclical rate B) the natural rate of unemployment minus the cyclical rate C) the natural rate of unemployment times the cyclical rate D) the natural rate of unemployment divided by the cyclical rate
Mutual interdependence is an important characteristic of a monopolistically competitive market
Indicate whether the statement is true or false
Ben is exhausting his money income consuming products A and B in such quantities that MUa/Pa = 5 and MUb/Pb = 8. Ben should purchase:
A) more of A and less of B. B) more of B and less of A C) more of both A and B. D) less of both A and B.
If Country A has an absolute advantage over Country B in the production of every commodity:
A. mutual gains from trade between Country A and Country B would be impossible. B. Country B would be able to gain from trade but not country A. C. the joint output of the two countries could not be increased through specialization and exchange. D. mutual gains from trade would still be possible.