Demand for a good is said to be inelastic if the quantity demanded increases slightly when the price falls by a large amount
a. True
b. False
Indicate whether the statement is true or false
True
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If the purchasing power of the dollar is greater than the purchasing power of the euro, purchasing power parity predicts that the exchange rate will
A) not fluctuate and stay constant in the long run. B) increase if the exchange rate is greater than 1 euro per dollar. C) decrease if the exchange rate is less than 1 euro per dollar. D) be equal to the relative purchasing power across the currencies in the long run.
Which theory best explains the wealth inequalities amongst nations?
A) weather B) government institutions C) natural selection D) factors outside of any human control E) levels of corruption
Suppose that the Bank of Japan buys yen-denominated assets with U.S. dollar assets. Everything else held constant, this transaction will cause ________ in the foreign assets held by the Federal Reserve and ________ in the U.S. monetary base
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
According to the figure shown, if Sarah puts forth low effort, then Joe should:
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
A. put forth high effort.
B. put forth low effort.
C. leave the market.
D. give an ultimatum.