Price controls may be thought of as
A) a restraint on the rationing function of prices.
B) useful tools that promote production.
C) necessary in market economies.
D) the freeing-up of free market forces.
Answer: A
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Economists define liquidity as
A) the difference between the return on the asset and the return on a long-term U.S. Treasury bond. B) the fraction the asset makes up of an investor's portfolio. C) the ease with which an asset can be exchanged for money. D) the difference between the total demand for an asset and the total supply of the asset.
Which of the following is true of an increase in quantity supplied of a given good?
a. It is represented by a rightward shift in the supply curve. b. It could result from a technological improvement. c. The price of a key resource used to produce the good may have decreased. d. It is caused by an increase in the price of the good. e. The price of an alternative good has increased.