Fred's demand schedule for movie DVDs is as follows: At $60, he would buy 1; at $50, he would buy two; at $30, he would buy 3; and at $20, he would buy 4 . If the price of movie DVDs equals $40, the consumer surplus Fred receives from purchasing movie DVDs would be:
a. $20
b. $30.
c. $40.
d. $110.
b
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The trade-to-GDP ratio for a nation that had $600 million in exports, $400 million in imports, and GDP of $2,000 million would be
A) 0.1. B) 0.2. C) 0.5. D) -0.1.
The possibility for recipients of funds in foreign countries to engage in riskier behavior after receiving financing is called
A) inequitable financing. B) moral hazard. C) adverse selection. D) asymmetric information.
The structural deficit is defined as
a. that part of the deficit that is so hard to remove that it is never reduced. b. the portion of the budget deficit that occurs because the economy is not at full employment. c. the hypothetical deficit the economy would have under current fiscal policies if the economy were operating near full employment. d. the actual budget deficit that exists in the economy.
The current worth of future income after it is discounted, to reflect the fact that future dollars are worth less than current dollars, is called
a. the net present value of the income. b. arbitrage. c. the inflationary premium. d. the real interest rate.