A shift of the U.S. demand curve for Mexican pesos to the left and a decrease in the pesos price per dollar would likely result from:
a. an increase in the U.S. inflation rate relative to the rate in Mexico.
b. a change in U.S. consumers' tastes away from Mexican products and toward products made in South Korea, India, and Taiwan.
c. U.S. buyers perceiving that domestically-produced products are of a lower quality than products made in Mexico.
d. all of these.
b
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In the aggregate expenditure model, which of the following variables is assumed to be independent of real GDP?
A. consumption B. saving C. investment D. profit
The symmetry principle states that
A) the poorest person must be made as well off as possible. B) income should be transferred from the rich to the poor up to the point of complete equality. C) resources should be common property. D) people in similar situations must be treated similarly.
According to the signaling theory of education, better-educated workers
a. are likely to be high-ability workers. b. improve their marginal productivity through education. c. are in scarce supply in less developed countries. d. can only find low-skilled jobs due to technology.
Refer to the diagram. The degree of built-in stability in the economy could be increased by:
A. reducing government purchases so that the purchases line shifts downward but parallel to its present position.
B. changing the tax system so that the tax line is shifted downward but parallel to its present
position.
C. changing the tax system so that the tax line has a greater slope.
D. altering the government expenditures line so that it has a positive slope.