If we observe a market where the quantity supplied exceeds the quantity demanded, but the market price does not fall, then one explanation for this observation is
A. the market has a price ceiling in place.
B. consumers don’t really like this product.
C. the market has a price floor in place.
D. sellers must produce a minimum quantity of the good, regardless of the demand for the product.
Answer: C
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The actions that the Federal Reserve takes to ________ to pursue macroeconomic policy objectives refer to monetary policy
A) manage the money supply and interest rates B) set tax rates C) regulate imports and exports D) establish exchange rates
Once a new technology spreads and is adopted by many countries:
A. the first country to use it may lose its comparative advantage. B. the country will have to have strict intellectual property rights protections in place. C. other countries will perfect it, putting them at an absolute advantage. D. the first country to use it will lose its absolute advantage.
Suppose the world price of automobiles is $20,000 and automobile manufacturers in Country A use $10,000 worth of imported inputs and no domestic inputs. What is the effective rate of protection for the automobile industry in Country A, if there is a tariff of 25 percent on imported automobiles and a tariff of 50 percent on imported inputs used in this industry?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. The slope of a graph relating two variables is -5. This indicates that as one variable decreases, the other variable also decreases. 2. In the graph for the linear equation S = 15 - 5T, with T on the horizontal axis, the vertical intercept of the graph is -5. 3. In a curved graph that is dome-shaped, the tangent line at it maximum or highest point has an infinite slope. 4. A market system is characterized by the private ownership of resources and the use of prices to coordinate economic activity.