The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs
After this price ceiling is in effect and taking account of the resources lost in search, consumer surplus equals ________. A) $900,000
B) $400,000
C) $200,000
D) $180,000
E) $100,000
E
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If the dollar appreciates relative to foreign currencies, then ________.
A. net exports of the U.S. will increase B. U.S. goods will look cheaper to foreign buyers C. foreign buyers will find U.S. goods become more expensive D. foreign goods will look more expensive to U.S. buyers
When the production of a good creates an external cost, to achieve the efficient quantity governments can set taxes (T) such that ________
A) MSC = MC + T B) MC = MSC + T C) T = MC + MSC D) MSC = MC - T
Refer to the above table. Suppose Airbus is set to produce the aircraft before Boeing. Which company will enter the market?
What will be an ideal response?
Direct financing is distinguished from indirect financing because:
a. Direct financing is when a business borrows directly from pooled funds at a financial institution, and indirect financing is when it borrows in the bond or stock market. b. Direct financing is when a company borrows in the fixed-rate market, and indirect financing is when it borrows in the floating-rate market. c. Direct financing is when a business borrows in the bond or stock market, and indirect financing is when it borrows from pooled funds at a financial institution. d. None of the above.