Between 1988 and 1989, the price of retail space in Ginza, Tokyo's premier commercial and entertainment center, rose from $400 to $625 per square foot. This was the result of an increase in demand in the face of a perfectly inelastic supply curve for retail space. Economists call this
a. monopoly profit.
b. economic rent.
c. usury.
d. marginal revenue product.
b
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Use the following information to answer the next question.SecurityAmount (in billions)Treasury bills$220Corporate bonds140Treasury notes80Corporate stock200U.S. savings bonds60Treasury bonds100Other things equal, an increase of corporate bonds from $140 billion to $150 billion in the economy would
A. not change the size of the public debt. B. increase the public debt from $600 billion to $610 billion. C. decrease the public debt by $20 billion. D. increase the public debt from $460 billion to $470 billion.
Which of the following will not cause a demand curve to shift position?
a. A doubling of the good's price b. A doubling of the price of a closely substitutable good c. A doubling of income d. A shift in preferences
Which of the following is (are) factors affecting the constant in gravity equation estimates?
I. tariffs and quotas II. customs' issues and finance and currency issues III. administrative barriers to trade a. I b. II c. III d. I, II, and III
An increase in a country’s terms of trade means that
a) export-import contracts are of longer duration b) imports have become relatively more expensive c) the exchange rate is rising d) the benefits from trade are increasing e) the country is becoming less open to foreign trade