Suppose that the dollar real exchange rate falls by 10% against the euro, 20% against the pound, and 25% against the yen. If the United States trades equally with each country, what is the percentage decline in the real effective exchange rate?
a. 22.5%
b. 18.3%
c. 15.1%
d. 20.3%
Ans: b. 18.3%
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Rank the following goods from least to most elastic: gasoline, Unocal gasoline, gasoline at Murph's Unocal Station
A) Gasoline, Unocal gasoline, gasoline at Murph's Unocal Station B) Gasoline, gasoline at Murph's Unocal Station, Unocal gasoline C) Gasoline at Murph's Unocal Station, Unocal gasoline, gasoline D) Unocal gasoline, gasoline at Murph's Unocal Station, gasoline E) Unocal gasoline, gasoline, gasoline at Murph's Unocal Station
Which groups tend to have greater difficulties finding employment as a result of the minimum wage?
A) Minorities B) Teens C) Those with little work experience D) All of the above.
Time to maturity refers to the amount of time until
A) an asset repays the principal to an investor. B) an asset pays interest for the first time. C) a bond can be sold on the secondary market. D) the yield curve shows an upward slope.
Figure 4-5
represents the market for gasoline before and after a per-gallon tax. What does the triangular area ABC represent?
a.
the amount of revenue raised due to imposing the tax
b.
the loss in consumer surplus due to imposing the tax
c.
the loss in producer surplus due to imposing the tax
d.
the deadweight loss (or excess burden) caused by the tax