Which of the following is true?
i. A price ceiling set below the equilibrium price decreases search activity.
ii. A minimum wage is an example of a price ceiling.
iii. A price support decreases the quantity consumed.
A) only i
B) only ii
C) only iii
D) i and iii
E) ii and iii
C
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Suppose that the United States decided to subsidize a major research and development effort by U.S. firms in the semiconductor industry. Under the current rules of the WTO and GATT, the U.S. effort is
A) allowed as long as the subsidies are a small percent of the total cost. B) allowed as long as the subsidies do not involve a direct payment to the industry. C) not allowed. D) neither allowed nor disallowed. E) allowed as long as the subsidies are for developing a "precompetitive" technology.
The period between a business cycle peak and the subsequent trough is called
a. a recession. b. a complete cycle. c. an expansion. d. a change in economic trend.