If the Fed raises the federal funds rate, which of the following occurs?
A) Consumption expenditure decreases.
B) Investment increases.
C) The price of the dollar on the foreign exchange market increases.
D) Net exports increase.
E) Aggregate demand increases.
C
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Evaluate the following statement – "Economists are fond of saying that there are positive statements and normative ones but the truth is that all questions are really normative"
What will be an ideal response?
Good Patties is a chain fast-food hamburger restaurant that wants to expand into a foreign market. The managers of Good Patties are most concerned about the financial commitment and desire to keep the potential cost as low as possible. Which of the following entry methods is most likely to address the managers' financial concerns?
A) acquiring a foreign firm through a merger B) establishing a local office/restaurants managed by one of Good Patties' managers C) franchising D) independent entry
Use the information in the above table. If Income was evenly distributed, each person would receive
A) $9,000. B) $2,500. C) $1,800. D) $1,000.
Teesha is a producer of leather belts and bags. She has just learned that a new tax is going to be assessed on leather goods. If Teesha understands how taxes influence pricing, what is her most likely reaction?
a. She is upset because she knows she will receive less for her products. b. She is happy because she knows she will receive more for her products. c. She does not care because she knows this will not affect her products. d. She is happy because she will have more producer surplus on her products.