Suppose that Joan, the only consumer of pork, has a downward-sloping demand curve for pork and faces an upward-sloping supply curve. If her demand curve shifts out because she develops a craving for pork, then at the new equilibrium (everything else equal),
a. the price of pork relative to other goods will be higher than before.
b. Joan's marginal utility from every unit of pork she eats will be higher than before.
c. Joan's real income will be lower than before.
d. All of the above are correct.
d
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Imposing a tax on sales of a product
A) shifts the market demand curve for the product. B) shifts the market supply curve for the product. C) shifts both the market supply and demand curve for the product. D) has no effect on either the market demand or the market supply curve for the product.
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, what effect would these flows have had on Venezuela's overall balance and reserves account?
a. Overall balance would rise and reserves account would fall. b. Overall balance would not change and reserves account would fall. c. Overall balance would fall and reserves account would rise. d. Overall balance would fall and reserves account would fall. e. Overall balance would fall and reserves account would rise.
One of the keys to reducing poverty is
A. Increased population growth. B. The redistribution of existing incomes. C. Increased economic growth. D. Government control of resources.
The nominal value of Gross Domestic Product (GDP) is expressed in
A. constant dollars. B. inflation-adjusted prices. C. base-year dollars. D. none of these.