Price controls:
A. are regulations that sets a maximum or minimum legal price for a particular good.
B. allow a market to reach equilibrium.
C. prevent a good from being bought or sold.
D. All of these are true.
A. are regulations that sets a maximum or minimum legal price for a particular good.
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Studies have shown that drinking one glass of red wine per day may help prevent heart disease. Assume this is true, and favorable weather has increased the grape harvest of California vineyards
In the market for red wine, these two developments would A) increase demand and increase supply, resulting in an increase in the equilibrium quantity and an uncertain effect on the equilibrium price of red wine. B) increase demand and increase supply, resulting in an increase in the equilibrium price and an uncertain effect on the equilibrium quantity of red wine. C) increase demand and decrease supply, resulting in an increase in the equilibrium quantity and a decrease in the equilibrium price of red wine. D) increase demand and increase supply, resulting in an increase in both the equilibrium price and the equilibrium quantity of red wine.
A graph that shows the percentage of the families on one axis and the percentage of income on the other is called the:
a. Budget-distribution curve. b. Income-consumption curve. c. Lorenz curve. d. Marx curve.
If a person has an absolute advantage in some activity, she must have a comparative advantage in that activity as well.
Answer the following statement true (T) or false (F)
If an economy experiences deflation, the real interest rate
A) will be less than the nominal interest rate. B) will be negative when the nominal interest rate is positive. C) will be greater than the nominal interest rate. D) will be equal to the deflation rate, so long as the nominal interest rate is positive.