The way the government keeps price floors in effect is by _____.
Fill in the blank(s) with the appropriate word(s).
buying up the surpluses
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Contractionary monetary policy and expansionary fiscal policy both reduce net exports in an open economy
Indicate whether the statement is true or false
In 1933 the unemployment rate was about 25%. This percentage
(a) is probably quite accurate because the data on unemployment collected by the federal government was quite good at the time. (b) is probably too high because some people with jobs claimed to be unemployed so that they could collect unemployment compensation payments. (c) is probably too low because there were discouraged and underemployed workers. (d) is probably meaningless because the data on unemployment was either very poor or nonexistent.
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Suppose Country B decides to specialize in tomatoes, and Country A specializes in bananas. What terms of trade would both countries agree to? One tomato for:
A. one banana B. two bananas C. four bananas D. six bananas
When firms have market power, it means that they:
A. can noticeably affect the market price. B. do not affect the market quantity offered for sale. C. can earn as much profit as they want. D. are a price taker.