The following diagram shows a market in equilibrium. If there was a $1.50 price ceiling, 
A. there would be a surplus of 30 units.
B. there would be a shortage of 30 units.
C. the quantity demanded would be 80 units.
D. the quantity demanded would be 65 units.
Answer: C
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Fred's Widget Company has purchased $500,000 in equipment, which can be sold for a salvage value of $300,000 at any time. The best interest rate on alternative investments is 5%
What is the cost of using this machinery for one year? How would your answer be different if the machinery had not yet been purchased?
Assume that the central bank purchases government securities in the open market. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The GDP Price Index rises, and nominal value of the domestic currency falls. b. The GDP Price Index falls, and nominal value of the domestic currency rises. c. The GDP Price Index rises, and nominal value of the domestic currency remains the same. d. The GDP Price Index rises, and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
Discuss the relationship between PPP and the Law of One Price
What will be an ideal response?
For all employee earnings subject to Social Security taxes, what is the current Social Security tax rate for employees?
A) 0.8% B) 2.9% C) 4.2% D) 6.2%