What best describes the impact of a price ceiling in a competitive market?
a. This benefits all consumers because they are able to obtain the good for a lower price.
b. The quantity supplied will be in excess of the quantity demanded.
c. It will likely lead to consumers waiting in line for longer periods of time to buy the good.
d. It will benefit both consumers and producers of the good.
c. It will likely lead to consumers waiting in line for longer periods of time to buy the good.
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As the central bank, the Federal Reserve System provides banking services to
A) banks and regulates financial institutions and markets. B) foreign corporations and determines the exchange rate. C) the government and the stock market. D) individuals and controls the quantity of money. E) banks and determines how much the U.S. government will borrow.
Security purchases by citizens of the United States on foreigners markets is
A) a credit item in the current account. B) a debit item in the capital account. C) a credit item in the capital account. D) a debit item in the current account.
Increases in interest rates are often blamed on
A) Congress. B) the President. C) the Fed. D) the U.S. Treasury.
Which of the following taxes is most clearly based on the benefits-received principle of taxation?
a. corporate income tax b. gasoline tax c. personal income tax d. payroll tax e. value added tax