The former Soviet Union was known for black markets. An explanation for the existence of these illegal markets is that:
a. goods were not subject to price controls.
b. the government imposed a price ceiling below the equilibrium price.
c. the government imposed a price ceiling above the equilibrium price.
d. all of these.
b
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Price elasticity of demand is defined as
A) the change in price divided by the change in quantity demanded. B) the change in quantity demanded divided by the change in price. C) the percentage change in price divided by the percentage change in quantity demanded. D) the percentage change in quantity demanded divided by the percentage change in price. E) the quantity demanded divided by the price.
According to behavioral economists, someone suffering from myopia is most likely to:
A. spend too little on present consumption and save more than is necessary for the future. B. vote only for economic policies that serve his or her short- and long-term interests. C. rely too much on System 2 of the brain. D. spend too much on present consumption and not save enough for the future.