Following the devastation of Hurricane Hugo, Charleston, South Carolina was cut off from the outside world and without electricity. Prices for bagged ice rose by 1,000 percent and electric generators by 300 percent and at least one tree removal firm charged $4,000 to cut up a tree. City government responded by passing an emergency law prohibiting price “gouging.” This law is an example of
A. the cost disease of services.
B. a price ceiling.
C. the laissez-faire rule.
D. the indispensable necessity syndrome.
Answer: B
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In sequential games,
a. Players take turns, and each player observes what his or her rival did before having to move b. Players take turns, but each player does not observe what his or her rival did before having to move c. Players move at the same time d. None of the above
Which of the following is an example of government discretionary spending?
A) defense spending B) net interest paid on government debt held by the public C) Social Security retirement payments D) Medicare benefits for the elderly
Modern economists measure how much utility Fred gets from a hot dog by
A. asking Fred how many utils he gets from its consumption. B. examining the price of the hamburger Fred chose not to buy. C. asking Fred how much of some other good he would give up to get the hot dog. The “other good” can be any good except money. D. asking Fred how much of some other good he would give up to get the hot dog. The “other good” can be any good, including money.
Suppose the current account of a country is in balance and the official settlements account equals 0. A new transaction occurs so that the current account is now in surplus, but the official settlements account does not change
From this we know that A) the balance of trade is now in surplus. B) the government is running a budget deficit. C) the capital and financial account is now in deficit. D) the government must make official reserve transactions.