A shortage results when a
a. nonbinding price ceiling is imposed on a market.
b. nonbinding price ceiling is removed from a market.
c. binding price ceiling is imposed on a market
d. binding price ceiling is removed from a market.
c
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Hotelling's rule states that
a. The net price of a resource is constant b. The net price of a resource rises at a rate equal to the interest rate c. The net price of a resource declines at a rate equal to the interest rate d. The price of a resource depends on the allocation of property rights e. The price of a resource is efficient as long as all user costs are internalized
A small country imports T-shirts. With free trade at a world price of $10, domestic production is 10 million T-shirts and domestic consumption is 42 million T-shirts. The country's government then compels the exporting country to limit its T-shirt exports to 20 million per year. With the voluntary export restraint (VER) in place, the domestic price rises to $12 per T-shirt and domestic production rises to 15 million T-shirts per year. How much does the importing nation lose as a result of the VER?
A. $77 million B. $12 million C. $52 million D. $20 million
The most that someone would pay today to receive a certain sum at some point in the future is known as
A. the interest rate. B. economic profit. C. future value. D. present value.
The type of nonprice rationing that most closely approaches the market outcome is
A. coupon rationing with coupons that cannot be resold. B. favored customer rationing. C. coupon rationing with coupons that can be resold. D. first-come, first-served basis or queuing.