Exhibit 15-6 Dollars per British pound
QuantityDemanded
Dollarsper Pound
QuantitySupplied
200
5
600
240
4
480
300
3
410
360
2
360
390
1
330
In Exhibit 15-6, the equilibrium exchange rate is:
A. 5.
B. 4.
C. 3.
D. 2.
Answer: D
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If a firm doubles its resources and generates an output level which is more than double, it is said to be experiencing:
a. economic fluctuations. b. recession. c. diseconomies of scale. d. increasing marginal returns to a factor. e. economies of scale.
A “near money” is an asset that can be
A. indistinguishable from commodity money. B. spent easily. C. a close substitute for money. D. only issued by a bank.
Use the following diagram to answer the next question.
We observe that the economy has moved from NX1 to NX2. This could have happened because ________.
A. exports increased by more than imports B. exports decreased C. exports increased by less than imports D. imports increased
If demand for a given good is perfectly elastic, it follows that
a. as price changes, quantity demanded does not change. b. as price changes, quantity demanded changes by a larger percentage. c. as price changes only a small percentage, quantity demanded falls to zero. d. as income changes only a small percentage, quantity demanded changes by a very large percentage. e. none of the above