If a price floor is set below the equilibrium price,
A. there will be a surplus.
B. the floor will be ineffective.
C. quantity demanded will be less than quantity supplied.
D. there will be a shortage.
Answer: B
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Which of the following best illustrates the use of discretionary fiscal policy?
a. Congress providing $1 billion in relief aid for hurricane victims b. Congress appropriating $400 million to help the needy and the appropriation being financed by a tax on wealth c. Income tax receipts being smaller because of a decline in real GDP during a recession d. The Federal Reserve tightening credit when it receives news of accelerating inflation e. Congress passing a bill authorizing $2 billion in additional spending when it receives news of a deepening recession
The real interest rate can be negative
a. True b. False Indicate whether the statement is true or false
A goal of ________ is to give patients an incentive to pay more attention to the prices of medical services. This would tend to increase economic efficiency by decreasing the costs of medical services
A) government-provided health care B) market-based reforms of the health care system C) socialized medicine D) the Patient Protection and Affordable Care Act (ACA)
Which of the following is most likely to have the strongest demand for environmental quality?
a. countries with water pollution problems b. poor countries c. countries with air pollution problems d. wealthy countries