Suppose the U.S. government imposes a maximum price of $5 per gallon of gasoline, and the current equilibrium price is $3.50 per gallon. This policy represents a:
A) binding price floor.
B) non-binding price floor.
C) binding price ceiling.
D) non-binding price ceiling.
D
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The IMF conditionality may include
A) changes in the fiscal and monetary policies of the country facing the financial crisis. B) changes in the exchange rate policies. C) regulating and restructuring the financial sector of the economy of the country in crisis. D) structural policies affecting international trade and public enterprises. E) All of the above.
If interest rates rise by 5 percentage points, say, from 10 to 15%, bank profits (measured using gap analysis) will
A) decline by $0.5 million. B) decline by $1.5 million. C) decline by $2.5 million. D) increase by $1.5 million.
In the long run in a perfectly competitive market, economic profit or loss is
a. the main determinant of total cost b. the main driving force determining consumer preferences c. the basis of all government policy d. the main driving force behind economic change e. expected to persist indefinitely
The process of asset transformation refers to the conversion of
A) safer assets into risky assets. B) safer assets into safer liabilities. C) risky assets into safer assets. D) risky assets into risky liabilities.