Which of the following will occur if a legal price floor is placed on a good below its free market equilibrium?
A. Surpluses will develop
B. Shortages will develop
C. Underground markets will develop
D. The equilibrium price will ration the good
E. The quantity sold will increase
D. The equilibrium price will ration the good
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The unemployment that fluctuates over the business cycle is called
A) frictional unemployment. B) structural unemployment. C) full unemployment. D) cyclical unemployment. E) natural unemployment.
Which of the following is accurately predicted by GDP?
a. production b. education c. health d. environmental protection
Which of the following statements about the term of a bond is correct?
a. Term refers to the various characteristics of a bond, including its interest rate and tax treatment. b. The term of a bond is determined entirely by its credit risk. c. The term of a bond is determined entirely by how much sales charge the buyer of the bond pays when he or she purchases the bond. d. Interest rates on long-term bonds are usually higher than interest rates on short-term bonds.
Any event that creates a "crisis in confidence" is likely to lead to
A. higher aggregate output. B. inflation. C. higher aggregate prices. D. lower aggregate prices.