If individuals are rational, they should choose actions that yield the:
A. smallest economic surplus.
B. largest economic surplus.
C. smallest total costs.
D. largest total benefits.
Answer: B
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Foreign exchange rates refer to the
A. price of one nation's currency in terms of another nation's currency. B. difference between exports and imports of a particular nation with another. C. price at which purchases and sales of foreign goods take place. D. rate of exchange of goods and services between two trading nations.
If the Fed conducts a contractionary monetary policy, ________
A) the nominal interest rate will decrease B) demand for labor will increase C) banks will make fewer loans D) bank deposits will increase
If the exchange rate appreciates, then the
A) quantity of dollars demanded increases. B) demand for dollars decreases. C) quantity of dollars demanded decreases. D) demand for dollars increases. E) supply of dollars decreases.
According to ________, when real GDP is ________ percentage points greater than potential GDP, the unemployment rate is one percentage point ________ the natural unemployment rate
A) Okun's Law; four; below B) Keynes' Law; two; below C) Phillip's Law; four; above D) Say's Law; two; above E) Okun's Law; two; below