A binding minimum wage is a type of:
a. quota.
b. price floor.
c. price ceiling.
d. tax incidence.
Ans: b. price floor.
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Refer to Mexico and Japan. Which country is the more efficient food producer, and which country is the more efficient cloth producer?
a. Mexico is the more efficient food producer, and Japan is the more efficient cloth producer.
b. Japan is the more efficient food producer, and Mexico is the more efficient cloth producer.
c. Mexico is the more efficient producer of both goods.
d. Japan is the more efficient producer of both goods.
The liquidity of money refers to
A) the amount of gold it is backed by. B) how quickly it can be disposed of without high transaction costs. C) asymmetric information. D) the standard of deferred payments and how quickly those payments can be made.
The actions that the Federal Reserve takes to ________ to pursue macroeconomic policy objectives refer to monetary policy
A) manage the money supply and interest rates B) set tax rates C) regulate imports and exports D) establish exchange rates
What is measured on the vertical axis of the aggregate demand/aggregate supply model?
A) real Gross Domestic Product (GDP) B) nominal income C) the price level D) the interest rate