Refer to Figure 10.3. What is the competitive price?
A) P1
B) P2
C) P3
D) P4
E) P5
D
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If a bottle of fine French wine costs US$250 in the U.S., 2500 rand in South Africa, there are no transaction costs, and the exchange rate is 5 rand/US$, then
A) there is an arbitrage opportunity by buying the wine in the U.S., and selling it in South Africa and the price in South Africa will drop. B) there is an arbitrage opportunity by buying the wine in South Africa., and selling it in the U.S. and the price in the U.S. will drop. C) here is an arbitrage opportunity by buying the wine in South Africa., and selling it in the U.S. and the price in the U.S. will rise. D) there is no arbitrage opportunity.
If the government legalizes the purchase and sale of marijuana, the equilibrium quantity would then _________ and the price would then ________ if the supply of marijuana increased by _______ than the demand for marijuana increased
A) fall; fall; more B) fall; rise; more C) rise; fall; more D) rise; fall; less E) fall; fall; less
Around the year ______, growth in the world output per head accelerated sharply.
A. 1350 B. 1500 C. 1650 D. 1800
Crowding out due to government borrowing occurs when
A) lower interest rates increase private sector investments B) lower interest rates decrease private sector investment C) higher interest rates decrease private sector investment D) a smaller money supply increase private sector investment E) a smaller money supply decrease private sector investment