Which of the following is true of central banks?
A) They are responsible for issuing currency.
B) They control the amount of money in circulation.
C) They have considerable influence over the level of interest rates.
D) all of the above
D
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Smart phones are becoming less expensive as new technology reduces the cost of production. In a supply and demand model, explain the effects of the technological innovations and their effect on the quantity of smart phones
What will be an ideal response?
Describe the market structure of the beverage industry
What will be an ideal response?
Doug wants to start up his own business, and needs $25,000 to get it off the ground. He can either withdraw it from his savings account, where he currently earns 3 percent, or he can take out a loan for $25,000 and pay 5 percent interest. Doug should compare:
A. the implicit cost of $750 to the explicit cost of $1,250 and choose to use his savings. B. the implicit cost of $750 to the explicit cost of $1,250 and choose to borrow the money. C. the explicit cost of $750 to the implicit cost of $1,250 and choose to use his savings. D. the explicit cost of $25,750 to the explicit cost of $26,250 and choose to borrow the money.
The rules of the GATT
a. apply only to domestic trade within a nation b. apply to both domestic trade within a nation and international trade with other nations c. apply only to trade among nations d. prohibit tariffs e. encourage high tariffs