The current system of exchange rates can best be described as:
A. freely fluctuating exchange rates.
B. managed floating exchange rates.
C. rigidly fixed exchange rates.
D. an adjustable peg system.
B. managed floating exchange rates.
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Omar and John can fix computers or write computer programs. The table above shows the number of computers they can fix and the lines of code they can write in a day
a. Who, if anyone, has the absolute advantage? b. Who has the comparative advantage in fixing computers? Why? c. Who has the comparative advantage in writing programs? Why?
A microeconomic model CANNOT be used to
A) evaluate the impact of a price change on a firm's revenue. B) predict the impact on a rise of the minimum wage on unemployment. C) evaluate the fairness of the proposal to nationalize health insurance. D) evaluate the effect of an increase in stadium size on the price of a sport team's tickets.
Corey deposits $1,000 in a savings account that pays an annual interest rate of 5 percent. Over the course of a year, the inflation rate is 1.7 percent. At the end of the year, Corey has
a. $17 more in his account, and his purchasing power has increased by $10. b. $30 more in his account, and his purchasing power has increased by $50. c. $40 more in his account, and his purchasing power has increased by $33. d. $50 more in his account, and his purchasing power has increased by $33.
Whenever the additional revenue from the last unit of output exceeds the additional cost of that unit, a profit-maximizing firm should
A. produce more in order to increase profits. B. think about investing in another industry. C. produce less in order to increase profits. D. do nothing, the firm is making profits.