Suppose a currency's value in the foreign exchange market is determined solely by market supply and demand without any intervention by the government authority, the currency has
A) a fixed exchange rate.
B) a gold standard.
C) a price control in its exchange rate.
D) a floating exchange rate.
Answer: D
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In the above figure, start with the economy in equilibrium at point A. Then an unanticipated reduction in aggregate demand triggers a shift from AD1 to AD2. In the short run, this would cause
A) the price level to move from P1 to P2, but real Gross Domestic Product (GDP) would stay at Y1. B) the price level to fall from P1 to P2, real Gross Domestic Product (GDP) to fall from Y1 to Y2, and the rate of unemployment to increase. C) the price level to fall by some amount less than P1 but greater than P2, and the rate of unemployment would decrease. D) no change in either the price level or real Gross Domestic Product (GDP), but a decrease in unemployment.
Suppose you work in a human relations office, and an employee, Ariana, comes to you with a set of statistics she has gathered about your company. Which of these statistics might indicate wage discrimination?
a. Fewer minorities were interviewed than whites. b. There are ten percent more males than females in management. c. Female mechanics earn ten percent less than male mechanics. d. Technicians make fifty percent more than janitors.
Figure 5-16
Figure 5-16 shows Adam's purchases of bananas and apples when apples cost $5 each and bananas $4 each. The information implies that Adam's income
a.
must be $9.
b.
must be $20.
c.
must be $40.
d.
Adam's income cannot be determined without further information.
Recall the Application about incentives to immunize children in developing countries to answer the following question(s). According to this Application, which of the following were given to parents who immunized their children?
A. dal (a common Indian food) B. a set of cooking pans C. rupees D. both dal (a common Indian food) and a set of cooking pans