If a price floor of $10 a bottle is imposed on wine from California,
a. all wine from California becomes more expensive.
b. all wine from California becomes cheaper.
c. the price of some wines will increase.
d. the price floor will have no effect.
c. the price of some wines will increase.
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An official settlements account balance of -$5,000 means
A) official reserves of foreign currency increased by $5,000. B) official reserves of foreign currency decreased by $5,000. C) the country is exporting more than it is importing. D) the country is importing more than it is exporting.
The firm in the figure above is in monopolistic competition. The firm has
A) no excess capacity. B) excess capacity of 10 units. C) excess capacity of 20 units. D) excess capacity of 30 units.
Lee earns more than does Pat. Which of the following can explain why?
A) Pat is discriminated against. B) Lee has more human capital. C) Lee has a greater degree of specialization in earning an income. D) All of the above could be a factor leading to the wage difference.
If the Treasury finances an expenditure by borrowing from the Fed, the money supply
A) and bank reserves fall. B) and bank reserves rise. C) rises while bank reserves remain unchanged. D) remains unchanged as bank reserves rise.