Price ceilings are designed to protect sellers, while price floors are designed to protect buyers.
Answer the following statement true (T) or false (F)
False
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Define the types of principles of taxation, and illustrate with examples the different types of existing tax systems based on these principles
If inflation does not adjust rapidly in the short run, then when the Federal Reserve decreases the nominal interest rate, the real interest rate in the short run will:
A. not change. B. be determined by saving and investment decisions. C. decrease. D. increase.
The demand curve facing a monopolist will be more elastic
A. as the number of consumers increases. B. the greater is the amount of fixed costs to cover. C. the greater is the number of substitute products. D. as the consumers' need for the good increases.
You are on a vacation in a foreign country. Because it is your first visit to the country, you do not know much about the tourist spots. So you decide to ask the manager of the hotel regarding the popular tourist places
He tells you that there is a waterfall and a beautiful park close to the hotel that you can visit. You are wondering which place to go to when you overhear some of the tourists planning a trek to one of the falls. You decide to join them. This is an example of a(n) ________. A) moral hazard B) adverse selection C) pecuniary externality D) information cascade