Which of the following might explain why the government would create a price floor for a certain good?
a. The equilibrium price that would result in the market would be considered too high
b. The equilibrium price that would result in the market would be considered too low
c. The equilibrium quantity that would result in the market would be considered too high
d. The equilibrium quantity that would result in the market would be considered too low
e. The market will never achieve equilibrium on its own
B
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Net exports usually ________ when the U.S. economy is in a recession and ________ when the U.S. economy is expanding
A) increase; increase B) decrease; decrease C) decrease; increase D) increase; decrease
Restrictions on imports
A) usually have no permanent effects on an economy. B) is the best way to increase exports. C) protect United States jobs. D) eventually reduce exports.