Which of the following will lead to an appreciation of the U.S. dollar against the British pound?
A) an increase in British demand for U.S. imports
B) an increase in U.S. demand for British imports
C) an increase in British interest rates
D) a decrease in British demand for U.S. assets
Answer: A
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If the equilibrium wage for fast-food restaurants is $8 and the government enforces a minimum wage of $15
A. workers will get paid less. B. workers will be able to find more jobs. C. overall, society will be better off. D. fast-food restaurants will hire fewer workers.
If Sweden exports cell phones to Denmark and Denmark exports butter to Sweden, which of the following would explain this pattern of trade?
A) The opportunity cost of producing butter in Denmark is higher than the opportunity cost of producing butter in Sweden. B) Sweden has a higher opportunity cost of producing cell phones than Denmark, and Denmark has a higher opportunity cost of producing butter. C) Sweden has a lower opportunity cost of producing cell phones than Denmark and Denmark has a comparative advantage in producing butter. D) Sweden must have an absolute advantage in producing cell phones and Denmark must have an absolute advantage in producing butter.
The AD, SRAS, and LRAS curves each show a relationship between which two economic variables?
A) The aggregate price level and output B) The aggregate price level and the interest rate C) Output and unemployment D) Output and the interest rate
Gladys agrees to lend Kay $1,000 for one year at a nominal rate of interest of 5 percent. At the end of the year prices have actually risen by 7 percent
a. Gladys earns extra real income. b. Kay loses extra real income. c. Kay receives extra real income. d. Neither party gains or loses if the loan is repaid.