When purchasing a product with a credit card, the benefit of the product will be experienced in the ________, and the cost will be experienced in the ________.
A. present; present
B. present; future
C. future; present
D. future; future
Answer: B
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In a housing market with a rent ceiling below the equilibrium rent, apartment seekers spend more time searching for an apartment than they would in a housing market without a rent ceiling. Why does this difference exist?
A) In the market with the rent ceiling, renters are searching for the best buy in apartments. B) In the market with the rent ceiling, there is a wide variety in the quality of apartments for rent. C) In the market with the rent ceiling, the quantity of housing demanded is greater than quantity supplied at the ceiling price. D) The premise of the question is incorrect because people spend less time searching with a rent ceiling since they no longer need to look for a low-priced apartment. E) The premise of the question is incorrect because there is no difference in the search time between a market with a rent ceiling and one without a ceiling.
If the exchange rate changes from 20 cents per franc to 18 cents per franc, the U.S. dollar has
a. appreciated, since its value has increased b. appreciated, since its value has declined c. depreciated, making French goods more expensive in U.S. dollars d. depreciated, since its value has declined e. depreciated, since its value has increased
Suppose the central bank increases the money supply in an economy unexpectedly during a year. If the current inflation rate in this country is 3.4 percent, then according to new classical economists, the expected inflation rate for the following year would be:
a. 3.4 percent. b. less than 3.4 percent. c. 2.4 percent, because people form their expectations adaptively. d. around 6.8 percent. e. greater than 3.4 percent.
When an economy is operating with maximum efficiency, the production of more of commodity A will entail the production of less of commodity B because
a. resources are specialized and are not shiftable. b. resources are limited. c. the structure of demand is fixed at any point in time. d. material wants are insatiable.