Refer to the above figures. If a positive externality that existed becomes corrected, price and quantity will become
A) P1 and Q1.
B) P2 and Q2.
C) P3 and Q3.
D) P4 and Q4.
D
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When the central bank of some country prints large quantities of money, that county's currency loses value both in terms of the goods and services it buys and in terms of the amount of foreign currencies it can buy
a. True b. False Indicate whether the statement is true or false
Luigi is willing to lend Klaus $5,000 for one year at a nominal rate of interest of 7%. Both Luigi and Klaus expect the rate of inflation to be 2% in the next year. If the actual rate of inflation over the year was 1%, we can say ________.
A. Luigi is better off and Klaus is worse off B. Luigi is worse off and Klaus is better off C. Luigi and Klaus are both better off D. Luigi and Klaus are both worse off
The products sold by monopolistically competitive firms
A) are differentiated. B) are homogeneous. C) can be either homogeneous or differentiated. D) have no close substitutes.
The direct benefits of out-migration to a developing nation include:
(a) Loss of skilled workers. (b) Increased remittances. (c) Job growth. (d) Larger capital formation.