Suppose you are a U.S. importer purchasing coffee from Guatemala at a dollar price of $10,000 . If the bank charges $0.12 per quetzal, you would have to buy 120,000 quetzals to settle the account with the Guatemalan exporter
a. True
b. False
Indicate whether the statement is true or false
False
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Supply-side economics stress that: a. aggregate demand is the major determinant of real output
b. higher tax rates discourage people from working and investing as much as they would at lower tax rates. c. an increase in government expenditures and tax rates will cause real income to rise. d. expansionary monetary policy will cause real output to expand without accelerating inflation.
Al and Steve are both reporters at the same newspaper. Al is black and Steve is white. Al earns less than Steve. Which of the following can explain why Al earns less?
a. Although both have BA's in Journalism, Al's K-12 and college education were of a lower quality than Steve's. b. Al has greater experience. c. Al works the night shift and Steve works the day shift. d. Al writes editorials which are very popular with customers, while Steve covers the police report which fewer subscribers read.
When changes in a product's price cause corresponding changes in consumer demand, the product has
A. elastic demand. B. usefulness. C. utility. D. inelastic demand
Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells 250 tables, its marginal cost is equal to $200, and AVC is rising. If the market price of tables is equal to $150, Alex's Furniture Mart should:
A. decrease its level of table production. B. increase its level of table production. C. continue producing 250 tables. D. raise the price of its tables.