A "devaluation" occurs when
A) the official price of a currency is raised.
B) the official price of a currency is lowered.
C) a nation's currency depreciates under a flexible exchange rate system.
D) a nation's currency appreciates under a flexible exchange rate system.
E) none of the above
B
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Suppose new research shows that soy milk and other products derived from soybeans provide more health benefits than previously thought. At the same time, drought conditions result in extensive damage to the soybean crop
What will be the combined impact of these two factors on the equilibrium price and quantity of soybeans? A) Price will decrease, but the effect on quantity is indeterminate. B) Price will increase, but the effect on quantity is indeterminate. C) Quantity will decrease, but the effect on price is indeterminate. D) Quantity will increase, but the effect on price is indeterminate.
An example of a good that is not rival in consumption is:
A. a sports car. B. a paper clip. C. bottled water. D. electricity.
If an individual possesses an ability that others cannot acquire, payment to that individual is
a. partly economic rent. b. a return called the real wage. c. a return from investment in human capital. d. comparable to the return to well-trained nurses.
A government's policy of redistributing income makes the income distribution
a. more equal, distorts incentives, alters behavior, and makes the allocation of resources more efficient. b. more equal, distorts incentives, alters behavior, and makes the allocation of resources less efficient. c. less equal, distorts incentives, alters behavior, and makes the allocation of resources more efficient. d. less equal, distorts incentives, alters behavior, and makes the allocation of resources less efficient.