Suppose a shortage for good A exists. Given this information, we know that
A) the price of good A will tend to rise toward the equilibrium level.
B) the price of good A will tend to fall toward the equilibrium level.
C) a government price floor should be imposed above the current price so that the market can work more effectively.
D) a government price ceiling should be imposed above the current price so that the market can work more effectively.
Answer: A
Economics
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The difference between merchandise exports and imports is called the ________ balance
A) current account B) capital account C) official reserve transactions D) trade
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Four possibilities have probabilities 0.4, 0.2, 0.2 and 0.2 and values $80, $30, $0, and -$80 respectively. The expected value is:
a. $22 b. $24 c. $26 d. $28
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