Changes in which of the following will cause a change in exchange rates?
A. perceptions of economic and political stability
B. consumer preferences
C. real interest rates
D. all of these
Answer: D
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A new toll road was built in Southern California between San Juan Capistrano and Costa Mesa. On average, drivers save 10 minutes taking this road as opposed to the old road. The toll is $2; the fine for not paying the toll is $76
The probability of catching and fining someone who does not pay the toll is 90%. Individuals who take the road and pay the toll must therefore value 10 minutes at a minimum A) between $1.80 and $68.40. B) between $2 and $68.40. C) $1.80. D) between $1.80 and $76. E) more than $76.
Which of the following statements is most accurate?
a. Most economic historians believe that the policies of the federal government were an important cause of the Great Depression. b. Most economic historians believe rapid increase in inequality caused the Great Depression. c. The US experienced a relative absence of cyclical unemployment and was relatively free from the mass joblessness that had previously plagued the nation. d. More homogenous communities chose to have higher taxes to fund schools.
Suppose that a labor union negotiates an increase in wages of 4 percent for the coming year because annual inflation for the past five years has been 4 percent. The expectations formed by the union are:
a. pessimistic expectations. b. deductive expectations. c. rational expectations. d. adaptive expectations. e. optimistic expectations.
The difference(s) between NAFTA and the EEC is (are)
a. that the EEC is a free trade area while NAFTA is a customs union b. that NAFTA is a free trade area while the EEC is a customs union c. that both NAFTA and EEC are custom unions, but the EEC is in Europe while NAFTA is in North America d. that both NAFTA and EEC are free trade areas, but the EEC is in Europe while NAFTA is in North America e. that NAFTA countries place no tariffs on trade while the EEC countries do