The imposition of a binding price floor on a market
a. causes quantity demanded to be greater than quantity supplied.
b. causes quantity demanded to be less than quantity supplied.
c. causes quantity demanded to be equal to quantity supplied.
d. causes a decrease in demand.
b
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Explain what the Saudi oil minister meant when he warned OPEC of using its market power too much by saying "Remember, the Stone Age did not end because we ran out of stones."
What will be an ideal response?
The Bretton Woods system
a. put the world on a gold standard. b. put the world on a system of fixed exchange rates. c. put the world on a system of floating exchange rates. d. established the system of balance-of-payments accounts.
Ceteris paribus, if consumer tastes change so that more people are eating broccoli, then what will happen to the market equilibrium for cabbage, a substitute good for broccoli?
A. Price will increase, and quantity will increase. B. Price will decrease, and quantity will decrease. C. Price will decrease, and quantity will increase. D. Price will increase, and quantity will decrease.
Consider the case of a teacher who tells students that those who miss more than three classes for any reason will automatically receive a lower grade.
A. Students who miss more than three classes are irrational. B. The teacher is assuming that students are irrational, and she must force them to attend class. C. This is an example of a positive incentive for students to attend class. D. This is an example of a negative incentive for students to attend class.