In a market economy, the decision regarding allocation of resources is made by
a. automatic forces of supply and demand.
b. authorities in Washington, D.C.
c. planners in state capitals.
d. committees from a variety of economic interest groups.
e. All of the above are correct.
a
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Lily is a college student who likes to buy only two goods: Cheetos and Pepsi. To determine Lily's budget line, you need to know I. Lily's preferences for Cheetos and Pepsi. II. The prices of Cheetos and Pepsi. III. Lily's income
A) II only B) I and II C) II and III D) I, II and III
According to the marginal productivity theory of income
A) the income received by an individual who supplies labor services equals the incremental benefit generated to the firm by that individual's labor. B) the average income received by an individual who supplies resources is influenced by the resources owner's marginal productivity. C) the greater the quantity of resources owned by an individual, the greater his incentive to increase productivity and his income. D) the income received by an individual who supplies labor services equals the profit generated to the firm by that individual's labor.
Considering the data in the table shown above and 2010 as the base year, what is the inflation rate between years 2010 and 2015?
A) 0.0 percent B) 41.7 percent C) 17.1 percent D) 3.4 percent
Suppose the Canadian government agrees to establish an official exchange rate at which 1$ Canadian is equal to $0.925 U.S. Now suppose the demand for the Canadian dollar increases as more Americans travel to Canada causing the demand curve for Canadians dollars to shift to the right as shown in Figure (a). If the Canadian government wishes to maintain the official exchange rate then it must increase the supply of its currency as shown in Figure (b) by
a. selling U.S. dollars.
b. buying U.S. dollars.
c. restrict the amount of Canadian dollars in foreign exchange markets.
d. Any of the above.