The price received by sellers in a market will decrease if the government
a. imposes a binding price floor in that market.
b. decreases a binding price ceiling in that market.
c. decreases a tax on the good sold in that market.
d. increases a binding price floor in that market.
b
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For each of the following statements, state whether the statement is true, false, or uncertain and explain why
i. A risk neutral person is indifferent to a gamble and the expected value of the gamble. ii. A risk-averse person will never accept a gamble. iii. A risk-loving person will accept any gamble.
The three functions of money are medium of exchange,
a. measure of value, and standard of value. b. measure of value, and store of value. c. standard of value, and store of value d. medium of value, and store of value. e. measure of value, and deferred value.
If funds are being loaned from one commercial bank's excess reserves on deposit with the Federal Reserve to another commercial bank's deposit account at the Fed, the transaction is taking place in:
a. the discount market. b. the currency exchange market. c. the federal funds market. d. the open market. e. the reserves market
The aggregate supply curve slopes upward because firms
a. seek to maximize profits and output. b. normally can purchase inputs at fixed prices. c. employ technology, which is always fixed. d. purchase inputs whose prices rise as output rises.