Which of the following statements is true about price ceilings?
A. Price ceilings cause goods to be rationed by some other means than free market prices.
B. Ration coupons are the only way to ration goods when price ceilings are in place.
C. Price ceilings cause goods to be rationed by prices.
D. All of these statements are correct.
Answer: A
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Refer to the figure above. If A forms a customs union with B, it will import
A) 400 units from B. B) 200 units from C. C) 200 units from each. D) 400 units from B and 200 units from C.
New England's exports went primarily to
a. the United Kingdom. b. continental Europe. c. the West Indies. d. Africa.
The scandals involving Enron, World Com, Global Crossing and other large firms:
A. have resulted in a cry for less government regulation of public corporations. B. demonstrate that the government should be responsible for collecting and distributing financial information on firms. C. is what should have been expected on the part of investors, that is why there is a risk premium. D. are examples of asymmetric information and have led, at least temporarily, to a less well functioning stock market.
To assist pineapple growers in Hawaii, the U.S. government decides to limit the number of pineapples allowed into the country that are grown in Central American countries. Such a restriction is called a(n)
A) import. B) export. C) quota. D) tariff.