1.
If the government imposes a price ceiling, then:
Group of answer choices
producers would be inclined to increase the quantity supplied.
producers must charge the ceiling price.
the price offered by producers must be at or below the ceiling price.
the market supply curve will shift to the right.
the price offered by producers must be at or above the ceiling price.
2.
If foreign exchange rates are determined by the interaction of supply and demand forces for the various currencies, then the exchange rate is:
Group of answer choices
fixed.
government-determined.
set by the value of gold.
floating.
improper.
3.
According to Adam Smith's invisible hand doctrine:
Group of answer choices
self-interest best serves the interests of society.
only laissez faire mercantilism best serves the interests of society.
producers should serve the best interests of society.
laissez faire must be improved by government intervention.
4.
Which of the following is infrastructure?
Group of answer choices
Roads.
Public health and sanitation services.
Schools.
All of these.
5.
Which of the following is an example of an injection into the circular flow of income and expenditure?
Group of answer choices
Government borrowing
Saving
Consumption
Taxes
Exports
6.
When the tax structure of a nation is progressive, as incomes increase, the tax rate:
Group of answer choices
remains the same.
is proportional.
increases.
declines.
1) if the government imposes a price ceiling, assuming that the price ceiling is binding, the producers must charge the selling price because they will not charge anything below the ceiling price as it is not in their interest.
Hence, second option is correct
2) If the foreign exchange rate are determined by the interaction of supply and demand forces for the various currencies, then the exchange rate is floating.
Hence, Fourth second is correct.
3) according to Adam Smith invisible hand doctrine, self-interest best serves the interests of society. This means that the the market forces of supply and demand determine what is in the best interest of society.
Hence, first option is correct.
4) infrastructure include roads, public health and sanitation services and schools. These are those facilities which facilitate the growth and development of the economy and hence called infrastructure.
Hence, all of these are infrastructure.
Therefore, fourth option is correct.
5) Exports is an example of an injection into the circular flow of income and expenditure as it increases the income and expenditure further.
Hence, fifth option is correct.
6) when the tax structure of a nation is progressive as income increases, the tax rate increases.
Hence, third option is correct.
1. If the government imposes a price ceiling, then: Group of answer choices producers would be...
Consider a market in which the government imposes a price ceiling. Assume that neither supply nor demand is perfectly elastic nor perfectly inelastic. Which of the following groups will always gain from a price ceiling? Consumer Producers The government Society as a whole, because total surplus will increase No group will always gain from a price ceiling
1. Regulations that offer imperfect answers Group of answer choices Reflect the realistic choices that society must make between imperfect markets and imperfect government intervention. Are options that should never be implemented. Will always have costs greater than their benefits. Are not consistent with utility maximization in the real world. 2. An unregulated natural monopoly is most likely to Group of answer choices Produce where marginal cost equals price. Charge a lower price than if the same product were produced...
1. Marginal cost pricing means that a firm charges Group of answer choices A price that is marginally lower than the average total cost of production. Any price as long as average total cost is greater than marginal cost. A price that is marginally higher than the average total cost of production A price that is equal to the marginal cost of production. 2. If the government wants a natural monopolist to achieve allocative efficiency, the government should Group of...
Ethics refers to: 1 Group of answer choices Moral conduct as determined by the government and society.2 Laws governing society. Correct behavior. 3 All are correct. 4 Right and wrong conduct of individuals and institutions of which they are a part. which one？
A demand curve Group of answer choices None of the above shows what the price must be for producers to be willing to sell different amounts shows how much producers will be willing to set at various prices. usually slopes up
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1. An above-full-employment equilibrium occurs when Group of answer choices aggregate demand decreases while neither the short-run nor long-run aggregate supply changes. short-run aggregate supply decreases while neither aggregate demand nor long-run aggregate supply changes. the equilibrium level of real GDP is greater than potential GDP. the equilibrium level of real GDP is less than potential GDP. 2. Which of the following shifts the aggregate demand curve rightward? Group of answer choices a decrease in consumption an increase in investment...
1) What is real GDP? Group of answer choices It is the total market value of final goods and services produced in an economy in a given year. It is a sustained increase in the average price level of goods and services. It is the total market value of all final goods and services produced in an economy in a given year, adjusted for inflation. It is an increase in the money supply. 2) The unemployment rate is: Group of...
5: Which of the following statements best describes how supply and demand functions? Group of answer choices A. Supply and demand enables the establishment of a price B. Supply and demand is a market place. C. Supply and demand is the intersection of supply and demand curves D. They don t 6: When the government fixes a price below the market rate, what would be the most probable aberration? A. The market would suffer surpluses B. Less buyers would enter...
1. In a perfectly competitive market, ________. a. Group of answer choices b. bargaining over prices is a common phenomenon c. there are restrictions on the entry of new firms d. sellers produce identical goods e. each seller charges a different price for its product 2. John is a tomato farmer and sells his crops in a perfectly competitive market at the price of $1 per pound. John wants to increase his farm revenue, ________. a. so he would need...