Under a system of floating exchange rates, an excess supply for a particular currency will lead to a(n)
A. long-term shortage of that currency.
B. appreciation of that currency.
C. long-term surplus of that currency.
D. depreciation of that currency.
Answer: D
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The employment effect of a minimum wage increase is greater the
A. more elastic the demand for labor. B. less elastic the demand for labor. C. more the wage ceiling shifts the supply curve. D. more the wage floor shifts the demand curve.
Which of the following changes shifts the AD curve down and to the left?
A) A temporary increase in government purchases B) A rise in the nominal money supply C) A decrease in corporate taxes D) A decrease in consumer confidence
Which of the following asserts that politicians try to match policies to the preferences of “middle-of-the-road” voters?
a. Median voter theory b. Average constituent theory c. Bipartisan politics theory d. Rational ignorance theory
Define the following terms and explain their importance to the study of economics. a. maximin criterion b. Nash equilibrium c. Dominant Strategy d. Zero-sum game e. Credible threat
What will be an ideal response?