Figure 4.3 illustrates the demand for tacos. Assume tacos are an inferior good. An increase in income would bring about a movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.
C
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The foreign exchange market is the market in which
A) the world's governments collect their tariff revenue. B) goods and services are exchanged between governments. C) the currency of one country is exchanged for the currency of another. D) all international transactions occur. E) currencies are exchanged solely by governments.
The public sector of the U.S. economy includes:
a. the federal, state, and local government. b. multinational corporations and the federal government. c. the Federal Reserve bank of the U.S. d. the judiciary and the federal government. e. households.
Which of the following is an implication of the law of comparative advantage?
a. Countries with small amounts of labor relative to capital should specialize in producing labor-intensive commodities. b. Since workers in high-income countries utilize larger amounts of capital than workers in less developed nations, trade between capital-rich and capital-poor nations results in the exploitation of labor in the less developed countries. c. Countries that are high cost producers of agricultural products should trade those products for goods they can produce only at a low opportunity cost. d. Countries that are low opportunity cost producers of timber products should trade those products for goods they can produce only at a high opportunity cost.
An increase in the money supply leads to a(n) _____
Fill in the blank(s) with the appropriate word(s).