In what type of exchange rate system is the level of official reserves the most important?
A. Reserves are equally important in all systems
B. A partially-flexible exchange rate system
C. A fixed exchange rate system
D. A flexible exchange rate system
Answer: C
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Assume that the price elasticity of demand for a commodity is 0.20 . A 10 percent increase in the price of the commodity will be followed by a:
a. 20 percent increase in the quantity demanded. b. 2 percent decrease in the quantity demanded. c. 20 percent decrease in the quantity demanded. d. 0.2 percent decrease in the quantity demanded. e. 2 percent increase in the quantity demanded.
Consider the following equation: Log(yt)= 0.7 +1.2log(st)+0.3log(st-1)+0.2log(st-2)+0.1log(st-3) What is the percentage increase in y given a permanent 1% increase in s?
A. 1.2 B. 1.8 C. 2.5 D. 0.5
Consider the monopoly in the figure below with price regulated at $2 per unit. Deadweight loss resulting from the unregulated monopoly price is ________ than the deadweight loss resulting from the regulated price. 
A. less B. greater C. no different D. There is insufficient information to determine the difference in the deadweight loss between the regulated and unregulated prices.
Accounting costs and economic costs differ because
A. Economic costs include explicit costs and accounting costs do not. B. Accounting costs include implicit costs and economic costs do not. C. Accounting costs include explicit costs and economic costs do not. D. Economic costs include implicit costs and accounting costs do not.