Suppose that the price level in Country A increase relative to the price level in other countries. In which of the following ways are Country A's imports and exports most likely to change?
a. increase; no change
b. increase; decrease
c. no change; decrease
d. no change; increase
e. decrease; increase
Answer: b. increase; decrease
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A firm uses ________ for goods which the consumer takes pride in owning
A) price skimming B) prestige pricing C) penetration pricing D) predatory pricing
In events leading to the housing bubble, investment banks on Wall Street made money through the housing market by:
A. buying as many loans as possible to create mortgage-backed securities. B. relying on banks to sell as few high-risk mortgages as possible. C. ensuring local banks were making good loans. D. offering low interest loans to those with very good credit.
For each of the following, how would they be included in the national income accounts?
a. The University of California buys a new computer. b. Charles buys a new MP3 player. c. Marian buys a new mountain cabin. d. Vikki buys an old mansion with hopes of restoring it. e. Farmer Brown buys a used combine harvester.
The U.S. president who referred to inflation as "public enemy number one" was
a. Richard Nixon. b. Gerald Ford. c. Jimmy Carter. d. Ronald Reagan.