If a price ceiling is set at $10, and the equilibrium market price is $8, then which of the prices below is the price that consumers actually pay?
a. $2
b. $18
c. $10
d. $8
d
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Country A specializes in the production of automobiles and 45% of its population works in the automobile manufacturing industry. A sharp increase in world prices for automobiles led to a boom in the automobile manufacturing industry in Country A
However, the automobile manufacturers overestimated the demand for automobiles. This led to overproduction which resulted in a large stock of unsold cars. Which of the following is likely to happen in the near future? A) Investment in Country A will increase. B) The supply of credit in Country A will increase. C) Household consumption in Country A will increase. D) The unemployment rate in Country A will increase.
In a perfectly competitive market, a marginal entrant:
A) earns positive economic profits in the long run. B) is the first firm to enter a market. C) is indifferent between entering and not entering. D) determines the market price of the good it produces.
A commercial bank puts the funds it receives from various sources into
A) securities, cash assets and loans. B) loans, notes and coins in the bank's vault and deposits. C) reserves, deposits and loans. D) securities, cash assets and deposits.
Fiscal policy is implemented by
A) the central bank. B) private businesses. C) the Internal Revenue Service. D) the federal government.