A significant problem of a dual exchange rate system is that it
(a) is difficult to administer.
(b) leads companies to pursue rent-seeking behavior.
(c) promotes black markets.
(d) all of the above.
(e) none of the above.
D
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Suppose the demand for wine is elastic and that initially 5 million bottles of wine are produced and consumed in the United States. If the government imposes a tax of $2 per bottle of wine, the government will collect
A) more than $10 million in tax revenues. B) $10 million in tax revenues. C) less than $10 million in tax revenues. D) an amount that may be more than, equal to, or less than $10 million in tax revenues depending on the precise elasticity of demand.
The vicious cycle of poverty refers to the fact that LDCs are poor because other countries do not want to buy their goods and services
Indicate whether the statement is true or false
In understanding and analyzing "demand," we focus on how much of a product the buyers are
A. willing and wanting to buy at different prices. B. actually buying now and in the recent past at various prices. C. willing and able to buy at different prices. D. willing and able to buy with their given income.
Ceteris paribus, if consumer tastes change so that more people are eating broccoli, then what will happen to the market equilibrium for cabbage, a substitute good for broccoli?
A. Price will increase, and quantity will increase. B. Price will decrease, and quantity will decrease. C. Price will decrease, and quantity will increase. D. Price will increase, and quantity will decrease.