In quoting exchange rates:
A. usually one should quote the rate in such a way that the value is greater than one.
B. each country's central bank determines how the rate is to be quoted.
C. one should always quote these as units of foreign currency over a unit of domestic currency.
D. one should always quote the rate as the units of domestic currency over a unit of foreign currency.
Answer: A
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Refer to above figure. What happens to the Consumer Surplus of Hungarian customers as a result of this subsidy?
What will be an ideal response?
Monopolies in successive markets result in
A) a double markup for consumers. B) more output than if the input market is competitive. C) a lower output price than if the input market is competitive. D) All of the above.
The consumer price index and the GDP deflator are two alternative measures of the overall price level. Which of the following statements about the two measures is correct?
a. The CPI involves a base year; the GDP deflator does not involve a base year. b. The CPI can be used to compute the inflation rate; the GDP deflator cannot be used to compute the inflation rate. c. The CPI reflects the prices of goods and services produced domestically; the GDP deflator reflects the prices of all goods and services bought by consumers. d. The CPI reflects a fixed basket of goods and services; the GDP deflator reflects current production of goods and services.
If the GDP in one year is greater than it was in the previous year, then economic growth must have occurred
Indicate whether the statement is true or false