Which of the following government programs will create a shortage?
A. Support prices.
B. Ceiling prices.
C. Sales tax.
D. None of these choices will create a shortage.
B. Ceiling prices.
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As a firm produces more and more DVDs, the average cost of producing each DVD falls. A curve showing the behavior of the average cost of a DVD as more DVDs are produced
A) would be positively and then negatively sloped. B) would be positively sloped. C) would be horizontal. D) would be negatively sloped.
Refer to Figure 3-4. At a price of $15, how many units will be sold?
A) 300 B) 400 C) 600 D) 700
The Board of Governors of the Federal Reserve serves on a larger policy-making group called the House Banking Committee
Indicate whether the statement is true or false
Quotas are
A. methods for reducing imports by limiting the quantity of goods from a specific country that can enter the country each year. B. taxes on imports that raise their prices and reduce their attractiveness to domestic buyers. C. voluntary agreements designed to reduce the harm to firms engaged in foreign trade. D. subsidies to foreign producers to encourage them to trade.