What is the effect of important restrictions on prices?
a) they cause prices to drop
b) they cause prices to rise
c) they often cause prices to rise steeply and then drop
d) they usually do not have any lasting effect on price
Ans: b) they cause prices to rise
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Cole was discussing the market for cocoa beans with his friend John Schmidt
Cole said, "Ever since Venezuela announced that its cocoa harvest was its lowest ever in fifteen years, the price of cocoa beans has been rising and rising and people are buying more and more. I think the demand for cocoa beans must be upward sloping." Is Cole right? Briefly explain why or why not.
It is argued that a tariff may help promote employment in a single industry, but is not likely to help employment in general. Discuss
What will be an ideal response?
In the market for fossil-fuel-based electric power,
a. the MEC is horizontal b. the competitive equilibrium is efficient c. the MSC is exactly equal to the MPC d. none of the above
Which of the following would be counted in the calculation of GDP?
a. the sale of a rare, old coin to a coin collector b. the damage to a house caused by a hurricane c. the brokerage commission from the sale of 100 shares of Microsoft stock d. the sale of cocaine in the black market