If the government imposed a price ceiling on gasoline above this good's current market clearing price, there would be
A) a shortage of gasoline. at the ceiling price.
B) a surplus of gasoline at the ceiling price.
C) an increase in the price of gasoline.
D) no change in the price of gasoline.
Ques. 2In the long run, a higher government budget deficit causes
A) a decrease in both private spending and equilibrium real GDP.
B) an increase in both private spending and equilibrium real GDP.
C) a decrease in private spending while equilibrium real GDP remains unchanged.
D) no change in private spending but a decrease in equilibrium real GDP.
Ques. 3One important factor that affects economic growth is
A) gold reserves.
B) the rate of saving.
C) which political party is in power.
D) the number of workers in heavy industry.
Ques. 4All of the following are regulatory agencies EXCEPT
A) the National Rifle Association.
B) the Environmental Protection Agency.
C) the Food and Drug Administration.
D) the Occupational Safety and Health Administration.
Ques. 5Which of the following has contributed to developing countries' poor economic performance?
A) low population growth
B) corruption
C) high capital investment
D) foreign direct investment
Ques. 6An excise tax is a tax that is levied on
A) the value of a piece of property.
B) the purchase of a given good or service.
C) the value of an estate.
D) that part of a person's income coming from interest payments.
Ques. 7All of the following are economic functions of the government EXCEPT
A) providing a legal system.
B) determining the wage rate for most jobs.
C) promoting competition in the market.
D) providing public goods.
Ques. 8Straight Cut beauty salon merges with Clean-Cut beauty salon. This is an example of
A) conglomerate merger.
B) concentration ratio.
C) vertical merger.
D) horizontal merger.
Ques. 9A price floor set below the equilibrium price will cause which of the following?
A) an increase in demand
B) a shortage
C) a surplus
D) none of the above
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