In which market should you begin your analysis if immigration of low-skilled workers increases?
a. Foreign exchange market, with a shift in the supply of domestic currency
b. Foreign exchange market, with a shift in the demand for domestic currency
c. Real goods market with, a shift in aggregate supply
d. Real goods market with, a shift in aggregate demand
e. Real loanable funds market, with a shift in the supply of real loanable funds
.C
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If demand for clean water is specified as P = 140 – 2Q, and the market price is $40, then consumer surplus at that price level is
a. $2500 b. $3000 c. $1600 d. $50
Do people's incomes result from the choices they make?
A) Yes, and from no constraints whatsoever. B) Yes, but from among a limited set of options. C) No, because obviously no one would choose to be poor. D) No, because others often will not let people have what they choose.
If the money supply in the economy were at MS3, to engage in expansionary policy the Federal Reserve Bank would use open market operation to move money supply to:
A. MS1
B. MS2
C. MS4
D. it would stay at MS3
An important factor in the choice of an exchange rate regime in low-income nations is:
A) the credentials of the finance minister. B) the extent of liability dollarization, which can cause contractions when the home currency depreciates. C) how dependent the nation is on imports, which must be financed by external borrowing. D) the price level and how it affects the interest rate level in the nation.