In a graph showing the market supply and demand for British pounds in terms of U.S. dollars, the demand-for-pounds curve is downward-sloping because ________.
A. fewer British pounds can be purchased if pounds become less expensive
B. more British pounds can be purchased if pounds become less expensive
C. fewer U.S. dollars can be purchased if British pounds become less expensive
D. more U.S. dollars can be purchased if British pounds become more expensive
Answer: B
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Assume that for the fourth quarter of 2012, nominal GDP was $245 billion, potential real GDP was $260 billion, and the GDP deflator was 112. According to Okun's law, the cyclical unemployment rate during the fourth quarter of 2012 was
A) 2.9%. B) 3.1%. C) 8.0%. D) 8.4%.
Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases and the price of CDs increases, her new budget constraint could be
A. CD. B. BD. C. AD. D. Both B and C are correct.
Using the midpoint method to calculate the price elasticity of demand eliminates the problem of computing:
A) total revenue when price falls and demand is elastic. B) total revenue when price falls and demand is inelastic. C) different elasticities, depending on whether price decreases or increases. D) different elasticities, because price and quantity are inversely related on the demand curve.
One special feature about health-care services is that society regards them as:
A. Private goods B. An entitlement C. Something to be rationed by price and ability to pay D. Normal goods