Two economists found empirical evidence that when the price of rice decreased in the Hunan province of China, local residents consumed less rice than before the price decrease. The study provides a real-world example of a(n)
a. normal good.
b. inferior good that is not a Giffen good.
c. Giffen good.
d. luxury good.
c
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Suppose that at some point the spot exchange rate is equal to 100 yen per one U.S. dollar, while the interest rate in dollars is 6% and the interest rate in yen is 1%. What is the approximate forward rate that is consistent with this situation?
A) 95.3 yen per dollar B) 105 yen per dollar C) 107 yen per dollar D) 92 yen per dollar
If Ap is total autonomous planned spending, c is the marginal propensity to consume, s is the marginal propensity to save, and Y is the equilibrium income level, then
A) Ap/Y. B) Y = Ap/s. C) sY. D) cAp.
If a foreign producer sells a good in a country at a lower price than in its home market, this is called
A) a countervailing duty. B) a tariff offset. C) dumping. D) a reverse tariff.
As the wage rate increases for computer programmers, the
a. supply curve for computer programmers will shift to the right b. supply curve for computer programmers will shift to the left c. demand curve for computer programmers will shift to the left d. minimum wage will fall in this labor market e. supply curves for workers in similar industries will shift to the left