Price controls will tend to cause misallocation of resources because
a. production (or opportunity) cost no longer corresponds to market price.
b. people are unable to determine their preferences at the high or low price.
c. producers no longer have incentive to be profitable.
d. consumers no longer have incentive to spend their income efficiently.
A
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Secondary reserves are
A. very short-term U.S. government securities. B. vault cash. C. deposits at the Federal Reserve District Bank. D. excess reserves.
Ceteris paribus, the quantity demanded of a good will decrease in response to:
A. Higher income. B. A higher price for the good. C. A rightward shift of the supply curve. D. A lower price for the good.
________: the curve which depicts the relationship between Aggregate expenditures and aggregate output
Fill in the blank(s) with correct word
The theory of comparative advantage implies which of the following?
A. Workers in an industry in which the United States does not have a comparative advantage will be hurt if the United States reduces barriers to trade. B. The gains to trade are exactly offset by the losses from trade. C. There are gains to trade for a country as long as that country has a comparative advantage in producing the goods that it imports and exports. D. A country with an absolute advantage in a good will necessarily have a comparative advantage in that good.