Refer to Figure 5.1. In which graph could a shift from BL1 to BL2 represent a doubling of the prices of both Books and DVDs?
A. A
B. B
C. C
D. D
A. A
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In Country X, the government requires employers to collect 9 percent of every employee's compensation as payroll tax. This is an example of
a. progressive tax. b. regressive tax. c. digressive tax. d. proportional tax.
Marginal product:
A. diminishes at all levels of production. B. may initially increase, then diminish, but never become negative. C. may initially increase, then diminish, and ultimately become negative. D. is always less than average product.
An example of the moral hazard problem in international investment would be that
A. those seeking the funds are dishonest. B. those seeking funds for the riskiest projects are amongst those most actively seeking the funds. C. government officials may demand higher than the usual amount of bribes. D. the recipients of the funds may use the funds for riskier projects than the approved project.
How will contractionary monetary policy in Japan affect the demand and supply of the yen in the foreign exchange market?
A) The demand for the yen will fall, and the supply of the yen will increase. B) The demand for the yen will increase, and the supply of the yen will fall. C) The demand for the yen will fall, and the supply of the yen will fall. D) The demand for the yen will increase, and the supply of the yen will increase.