Price ceilings often generate
A) market clearing prices.
B) rapid increases in supply to meet the excess demand.
C) equilibriums that utilize rationing by price.
D) black markets.
Answer: D
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We can expect very small deviations from interest rate parity in
A) the domestic markets. B) the Eurocurrency market. C) the goods market. D) All of the above.
A rise in interest rates will increase your incentive to
What will be an ideal response?
Once people hear what the majority of individuals like them are doing, they are most likely going to choose:
A. something slightly worse, because they don't want to be taken advantage of. B. the same, because they typically don't like to be outliers. C. something better, because they typically want to be special. D. None of these is likely.
Why is private ownership an important source of economic prosperity?
A) It eliminates the opportunity cost of using a resource. B) It allows owners to do anything they want with their property. C) It makes it possible for owners to ignore the desires of others without having to bear the cost. D) It provides owners with a strong incentive to develop and use assets in ways that others value highly.