The price received by sellers in a market will increase if the government
a. decreases a binding price floor in that market.
b. increases a binding price ceiling in that market.
c. increases a tax on the good sold in that market.
d. imposes a binding price ceiling in that market.
b
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In volatile markets, "speculators" would be expected to provide some stability because:
a. they will be required to do so by the government. b. they will use current price moves to predict future moves. c. they will buy when price is below equilibrium and sell when it is above equilibrium. d. they will buy when price is above equilibrium and sell when it is below equilibrium.
Nations trade what they produce in excess of their own consumption to:
a. generate jobs for the domestic economy. b. earn "good will" from the World Bank. c. prevent chronic surpluses from driving down domestic prices. d. acquire other things that they want to consume. e. reduce the size of their foreign trade deficit.