If, at the current exchange rate between the dollar and the South African rand of 6.92 rand per dollar, the dollar is "undervalued," how do you expect demand and supply in the foreign exchange markets to respond?
A) The supply of the dollar will fall, while the demand for the rand will rise.
B) The demand for the dollar will rise, while the supply of the rand will fall.
C) The demand for the dollar will fall, while the supply of the rand will rise.
D) The demand for the dollar will rise, while the supply of the rand will rise.
D
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________ will cause a movement along the modern Phillips curve
A) An increase in oil prices B) An increase in the price of imports C) Wage agreements that include compensation for inflation D) all of the above E) none of the above
Economists assume people are motivated by
A) unlimited resources. B) pride. C) self-interest. D) social justice.
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. For a worker in Country A, the trade-off of making one tomato is:
A. 2 bananas. B. 3 bananas. C. 4 bananas. D. 5 bananas.
The ________ of information is low at the beginning of the search process, but rises as one's search widens. In contrast, the ________ of information is high at the beginning of the search process, but falls as one becomes more and more knowledgeable about the market
a. total benefit, marginal cost b. marginal benefit, marginal cost c. marginal cost, marginal benefit d. marginal benefit, total cost