A price floor of $23 placed on the market in the graph shown:
A. is binding, and causes a shortage.
B. is non-binding, and does not affect the market.
C. is binding, and causes a surplus.
D. is non-binding, and does not prevent the market from reaching equilibrium.
C. is binding, and causes a surplus.
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Which of the following is a primary market transaction?
A) Sally Wither purchases 100 shares of IBM through her broker. B) Kold Co. issues 1 million new shares through Morgan Stanley. C) Bob Hill sells 1,000 shares of Disney directly to his friend. D) Kip Peters sells 1,000 shares of Dush, Inc., which he bought in an IPO last month, through his broker.
If the central bank buys foreign assets,
A) the domestic monetary base will decline. B) domestic short-term interest rates will decline. C) the foreign-exchange value of the domestic currency will rise. D) its holdings of international reserves will rise.
The federal government is concerned about obesity in the United States. Congress is considering two plans. One will ban the production and sale of "junk food.". The other will increase nutrition-education programs and include substantial advertising campaigns to encourage healthy eating habits. The junk-food ban program
a. and the education program will reduce the quantity of junk food sold and raise the price. b. and the education program will reduce the quantity of junk food sold and lower the price. c. will reduce the quantity of junk food sold and raise the price. The education program will reduce the quantity of junk food sold and lower the price. d. will reduce the quantity of junk food sold and lower the price. The education program will reduce the quantity of junk food sold and raise the price.
Firms that shut down must be earning negative profits in the short run.
Answer the following statement true (T) or false (F)