A price ceiling on maize will likely

a. increase the amount of maize demanded
b. reduce the amount of wheat supplied
c. cause maize to be smuggled outside the country
d. reduce the income of maize farmers
e. all of the above

E

Economics

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Monopolistically competitive firms increasing their advertising will definitely achieve which of the following?

A) shift their average total cost curve up B) shift their demand curve to the right C) increase their economic profit D) shift their demand curve to the right and shift their average total cost curve up

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The new classical view of budget deficits assumes that

a. people view government bonds as an addition to their wealth. b. individuals do not anticipate the tax liability implied by deficit spending. c. increased government borrowing will raise the interest rate and retard private borrowing and capital formation. d. if future taxes (debt) are substituted for current taxes, people will save the reduction in current taxes in order to pay the higher future taxes.

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