If Americans develop a greater appreciation for Mexican-made goods, we should observe the following change(s) in the U.S. dollar-peso market:
A. the demand curve for dollars shifts right.
B. a movement down the supply curve of dollars.
C. the supply curve of dollars shifts left.
D. the demand curve for pesos shifts right.
Answer: D
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Which of the following best describes the influence of successful advertising on the market for aspirin?
A) The market demand curve shifts to the right, creating a shortage at the original equilibrium price. B) Individuals' demand curves shift to the right, but the market demand curve remains at its original position. C) The market supply curve shifts to the right, creating a surplus at the original equilibrium price. D) The market supply curve for aspirin shifts to the right, causing equilibrium price to decrease.
Bid-rigging is more likely when
a. auctions are for larger amounts b. auctions are frequent c. auctions are infrequent d. the auctioneer is paid on commission rather than a fixed fee
When creating a demand curve for a good where one group gets the good for free and another group must pay the market price, you must
A. add the amount that the first group wants (when it is available to them free) to the quantity demanded by the second group at each price. B. add the price paid at each quantity. C. take an average of the quantity demanded at each price. D. add the quantity demanded for each group at each price.
Answer the following statements true (T) or false (F)
1) The 12 Federal Reserve Banks are governmentally owned but privately controlled. 2) The U.S. Treasury is the only agency authorized to put money into circulation in the U.S. economy. 3) Thrifts are known as "banker's banks" because they lend money to commercial banks. 4) As of March 2009, the federal government and the Federal Reserve had spent $170 billion to keep AIG financially afloat. 5) Subprime mortgage loans are so named because the rates charged are below the prime interest rate.