A fixed exchange rate is an exchange rate whose value:
A. reflects the comparative advantage of the home country versus other foreign countries.
B. is established annually by the International Monetary Fund.
C. varies according to supply and demand for the currency in the foreign exchange market.
D. is set by official government policy.
Answer: D
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If the interest rate is 8 percent, the present value of $10,000 to be received 10 years from today is about
A) $21,589. B) $9,259. C) $4,632. D) $10,800.
A production possibilities frontier will be bowed out if
a. there is scarcity b. resources are used efficiently c. production of one good involves an opportunity cost d. resources are not perfectly adaptable to making each good e. technology is improving
Suppose the market price of a good X is below the equilibrium price. The result is a shortage and sellers can be expected to decrease the quantity of that good X supplied
a. True b. False Indicate whether the statement is true or false
A price ceiling imposed on a monopoly may:
A. drive the monopolist out of business. B. lead to no shortage. C. lead to a shortage. D. All of the statements associated with this question are correct.