Under a gold standard, if the U.S. has a trade deficit with Japan,
A. the U.S. would receive gold from Japan, the Japanese money supply would decline, and the price level would fall in Japan.
B. the U.S. would receive gold from Japan, the U.S. money supply would increase, and the U.S. price level would rise.
C. the U.S. would lose gold to Japan, the U.S. money supply would increase, and the price level in the U.S. would increase.
D. the U.S. would lose gold to Japan, the U.S. money supply would decline, and the U.S. price level would fall.
D. the U.S. would lose gold to Japan, the U.S. money supply would decline, and the U.S. price level would fall.
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The income effect of a price increase for a Giffen good outweighs the substitution effect
Indicate whether the statement is true or false
The country of Robinya has a tax system identical to that of the United States. Suppose someone in Robinya bought a parcel of land for 10,000 deera (the local currency) in 1970 when the price index equaled 100 . In 2010, the person sold the land for 100,000 deera, and the price index equaled 500 . The tax rate on nominal capital gains was 20 percent. Compute the taxes the person paid on the
nominal gain and the change in the real value of the land in terms of 2010 prices to find the after-tax real rate of capital gain. a. -20 percent b. 20 percent c. 42 percent d. 64 percent
For all firms, the additional revenue collected from the sale of one additional unit of output is termed:
A. marginal profit. B. average revenue. C. marginal revenue. D. price.
The production possibility curve (PPC) shows the ________ production of one good for ________ production level of the other good.
A. maximum; the minimum B. minimum; every possible C. maximum; every possible D. minimum; the maximum