The predominant condition that encourages governments to place price floors on markets is
a. the need for consumers to buy products at reasonable prices
b. a war situation in which excess demands occur resulting in price increases
c. a substantial increase in income, which shifts the demand curve to the left
d. a series of substantial crop failures that shift the supply curve of food to the left
e. technological changes that shift the supply curve to the right
E
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Explain what is meant by the term "monetizing the deficit."
What will be an ideal response?
Which of the following is most likely to represent causality rather than association?
a. In years that fashion dictates wider lapels on men's jackets, the stock market grows by at least 5 percent. b. Interest rates are higher in years ending with a 1 or a 6. c. Unemployment falls when the AFC champion wins the Super Bowl. d. Quantity demanded goes up when price falls because lower prices increase consumer purchasing power, ceteris paribus.
Which one of the following statements best describes a price ceiling?
a. A price ceiling causes demand to change. b. A price ceiling causes supply to change. c. A price ceiling keeps a price from rising above a certain level. d. A price ceiling keeps a price from falling below a certain level.
Econometrics is the statistical analysis of economic data.
A. True B. False C. Uncertain