Which of the following best describes a deliberate government decision to lower the exchange rate, E?
A) appreciation
B) depreciation
C) revaluation
D) devaluation
E) accumulation
C
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The quantity of new cars increases by 10 percent. If the price elasticity of demand for new cars is 1.25, the price of new cars will fall by
A) 2.5 percent. B) 8 percent. C) 10 percent. D) 12.5 percent.
Which of the following statements is true about information transfer within an organization?
a. More information is always better. b. People at higher levels cannot add to the quality of a decision when an employee lower in the order has all the information and is able to take the decision on his/her own. c. Decision relating to a particular department in an organization usually depends only on the information provided from that department. d. Optimal amount of information removes the risk of errors in decision-making.
When the government imposes an $8 price ceiling on a good that would have had a $10 equilibrium price without the ceiling,
A. surpluses are created. B. supply will increase to meet the demand. C. excess demand occurs. D. quantity demanded of the good will fall.
According to the Lucas supply function, if a firm mistakenly perceives that all prices are going up because its own output price is going up, it will
A. increase its production. B. keep its production level constant. C. increase expectations regarding its own output price. D. decrease its production.