How are the fundamental economic decisions determined in Cuba?
A) The United Nations decides because Cuba is a developing economy.
B) These decisions are made by the country's elders who have had much experience in answering these questions.
C) The government decides because Cuba is a centrally planned economy.
D) Individuals, firms, and the government interact in a market to make these economic decisions.
C
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A rightward shift in the supply curve of reserves held at the Fed ________
A) reduces the federal funds interest rate B) increases unemployment C) reduces the price level D) increases the tax rates
Suppose that flu shots create a positive externality equal to $20 per shot. What is the relationship between the market equilibrium output level and the efficient equilibrium output produced? a. They are equal
b. The market equilibrium output level is greater than the efficient equilibrium output level. c. The market equilibrium output level is less than the efficient equilibrium output level. d. None of the above.
If a price ceiling were established above the equilibrium price,
A) it would have no effect on the quantity demanded. B) it would create a shortage. C) it would create a surplus. D) none of the above.
Refer to Scenario 3.1 below to answer the question(s) that follow.SCENARIO 3.1-Streaming movies and movies shown in theaters are substitutes. -Streaming movies and OLED TVs are complements. -OLED TVs and movies shown in theaters are normal goods. -People watch streaming movies more often in the winter than in the summer.Refer to Scenario 3.1. Most OLED TVs sold in the United States are imported from Asia. If the United States government eliminates a quota that reduced the number of OLED TVs that can be imported into the United States, ceteris paribus, what would happen?
A. The price of OLED TVs would decrease and the price of streaming movies would increase. B. The price of OLED TVs and the price of streaming movies would increase. C. The price of OLED TVs would increase and the price of streaming movies would decrease. D. The price of OLED TVs and the price of streaming movies would decrease.