Does voluntary exchange create wealth (value)?
What will be an ideal response?
Yes, trade generally permits the trading partners to gain more of what they value; this is why they agree to the terms of the exchange.
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Other things remaining the same, the higher the current exchange rate, the larger is the expected profit from buying dollars
Indicate whether the statement is true or false
When the percentage change in quantity supplied is greater than the percentage change in price, supply is said to be elastic
Indicate whether the statement is true or false
If a decrease in the price of a good decreases the total revenue, the demand for the good is
a. price elastic b. price inelastic c. income elastic d. income inelastic
The book that is the basis for modern macroeconomic theory is
a. The Wealth of Nations. b. Principles of Political Economy. c. The General History of Money and Banking. d. The General Theory of Employment, Interest, and Money.