If a price floor of $23 were placed on the market in the graph shown, which area represents the surplus that is transferred?
A. B
B. C
C. B + C + D
D. B + C
Answer: A
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Proponents of the flexible exchange rate system argue that under a fixed exchange rate system,
A) there is too great a chance that the exchange rate will diverge from the equilibrium exchange rate. B) nations that experience persistent trade deficits might be tempted to impose trade barriers. C) nations might sacrifice their domestic economic policy goals for the sake of maintaining the exchange rate. D) b and c E) a, b, and c
Define GDP
What will be an ideal response?
Which of the following statements about taxation is TRUE?
A) Increasing taxes will always increase tax revenues. B) Static tax analysis recognizes that an increase in taxation could lead to a decrease in tax revenues. C) Dynamic tax analysis assumes that an increase in taxation will leave the tax base unchanged. D) There is a tax rate at which tax revenues are maximized.
In New York City, apartment rent can be adjusted only when a tenant leaves. This leads
A) people to change apartments often. B) landlords to encourage tenants to stay in their apartments. C) tenants to stay in apartments longer than they would otherwise. D) businesses to build new rental units.