Which of the following is NOT a potential result of a price floor?
A) excess supply
B) price greater than free-market equilibrium price
C) Lower quality inputs are used, which increases marginal cost.
D) All of the above.
C
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A small country is an international lender and its domestic supply of loanable funds increases. Consequently, the equilibrium quantity of loanable funds used in the country ________ and the country's international lending ________
A) increases; decreases B) does not change; does not change C) does not change; increases D) increases; does not change
How is the utility of a gamble to a risk averse person different from that to a risk neutral person?
The inflation rate is calculated
a. by determining the change in the price index from the preceding period. b. by determining the change in the price index from the base year. c. by determining the percentage change in the price index from the preceding period. d. by determining the percentage change in the price index from the base year.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.