In the foreign exchange market, a balance of payments surplus is represented by:
A) excess supply of dollars.
B) excess demand for dollars.
C) equilibrium in the foreign exchange market.
D) none of the above.
B
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The above figure shows the domestic market for wheat. Suppose this market is isolated from global competition and the government intervenes by setting a support price of $15 a ton
The quantity bought by domestic users once the price support is in place is A) 300 million tons. B) 400 million tons. C) 250 million tons. D) 200 million tons. E) 100 million tons.
A firm should hire more workers to increase its profits if
A) the marginal product of labor is greater than the wage the firm will pay these workers. B) there is enough capital and other resources for the workers to use. C) the demand for labor is elastic. D) the wage rate is less than the marginal revenue product of labor.
For an economy, the greater the value of the Gini co-efficient, _____
a. the greater will be the GDP. b. the greater will be the income inequality c. the greater will be the revenue of the government from direct taxes d. the greater will be the equality in the distribution of income and wealth e. the lesser will be the expenditure on the part of the government
Commercial banks increased their involvement in mortgages over the years due to:
A. the ability to securitize mortgages which made them more liquid. B. the increase in commercial loans demanded due to the development of the commercial paper market. C. the reduced risk of borrowers' defaulting on mortgage loans. D. the demands of regulators.