A currency swap can
A) make foreign goods more expensive in the domestic market.
B) make the foreign exchange rate more volatile over time.
C) reduce foreign exchange risk.
D) make domestic goods more expensive in foreign countries.
C
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The new $20 bills are being introduced by the U.S. Treasury primarily to diminish
a. inflation. b. poverty. c. counterfeiting. d. bank failures.
The study by economists Cox and Alm found that the 2006 after-tax income of the richest fifth of U.S. households is
a. equal to the after-tax income of the poorest fifth. b. 7 times the after-tax income of the poorest fifth. c. 14 times the after-tax income of the poorest fifth. d. 21 times the after-tax income of the poorest fifth.
According to the Incentive Principle:
A. people tend to do more of something when its benefits are greater. B. people will always take the highest-paying job they are offered. C. benefits are more important than costs in making a decision. D. it is irrational to perform volunteer services.
Which of the following is true about price elasticity of supply?
A) Price elasticity of supply = Percentage change in quantity supplied / Absolute change in price B) Price elasticity of supply = Percentage change in quantity supplied / Percentage change in price C) Price elasticity of supply = Percentage change in quantity supplied × Absolute change in price D) Price elasticity of supply = Percentage change in quantity supplied × Percentage change in price