When the ratio of domestic prices to foreign prices rises:
A) the real exchange rate depreciates.
B) the real exchange rate appreciates only when the nominal exchange rate appreciates.
C) the real exchange rate appreciates only when the nominal exchange rate depreciates.
D) the real exchange rate appreciates even when the nominal exchange rate is constant.
D
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Jim is haggling with a car dealer on the price of a used car. If the dealer is getting a bonus per sale made, in addition to the commission, the storekeeper's
a. Disagreement value increases b. Eagerness to agree increases c. Disagreement value decreases d. Both B&C
The third step of the four step process is to
a. identify the new equilibrium and then compare the original equilibrium price and quantity to the new equilibrium price and quantity. b. decide whether the economic change being analyzed affects demand or supply. c. draw a demand and supply model before the economic change took place. d. decide whether the effect on demand or supply causes the curve to shift to the right or to the left, and sketch the new demand or supply curve on the diagram.
The difference between zero accounting profit and zero economic profit is that
a. economists include opportunity cost in zero economic profit, while accountants do not include opportunity cost in zero accounting profit. b. economists do not include opportunity cost in zero economic profit, while accountants do include opportunity cost in zero accounting profit. c. economists include opportunity cost in zero accounting profit, while accountants do not include opportunity cost in zero economic profit. d. economists do not include opportunity cost in zero accounting profit, while accountants do include opportunity cost in zero economic profit.
Which of the following is not a characteristic of a bond?
a. its tax treatment b. its credit risk c. its term d. its dividend yield