Price ceilings and price floors:
A. make the rationing function of markets more efficient.
B. interfere with the allocation function of prices.
C. cause surpluses and shortages in markets respectively.
D. cause demand and supply curves to shift thus having no effect on the rationing function of prices.
Answer: B
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Suppose the government wants to reduce illegal importation of exotic animals used as pets and tries to achieve this goal by interrupting the supply of illegally imported exotic animals
If the demand for these animals is highly inelastic, this government effort will result in A) a small reduction in the quantity of exotic pets demanded. B) a large reduction in the quantity of exotic pets demanded. C) no change in the quantity of exotic pets demanded. D) an increase in the quantity of exotic pets demanded.
The ________ of a project is the sum of all costs and benefits associated with the project, using present values to make the costs and benefits comparable
A) discounted value B) cumulative present value C) net present value D) gross present value