Assume that a computer is a normal good. An increase in consumer income, other things being equal, would:
a. cause an upward movement along the demand curve for computers.
b. cause a downward movement along the demand curve for computers.
c. shift the demand curve for computers to the left.
d. shift the demand curve for computers to the right.
d
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Increases in the prices of services due to improvement in its quality indicate a(n) _____
a. decline in productivity. b. decline in real GDP. c. increase in output. d. decline in manufacturing output. e. increase in technological progress.
________ is determined by the world demand for and the world supply of the good
a. Tariff b. World price c. Exchange rate d. Terms of trade
A society without any money:
A. would have to rely on barter. B. could never exchange goods and/or services. C. would find people doing everything for themselves. D. would be more efficient since people would be more self-sufficient.
Jane has just sent a gift that was made in the U.S. to her relatives in Italy. As far as the balance of payments is concerned this gift will
A. be part of the current account as a unilateral transfer. B. be considered an export since it has left the U.S. C. be part of the capital account since the gift is a physical item. D. have no influence on the balance of payments since it was made in the U.S.