There are not enough of four goods to satisfy the wants of people. For good A, this is true when the price is $100. This is true for good B at a price of $10, for good C at a price of $1, and for good D at a price of zero. Which situation reflects
scarcity rather than shortage?
A) A
B) B
C) C
D) D
Answer: D
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An export subsidy is a payment by the government to exporters to permit them to charge lower prices.
Answer the following statement true (T) or false (F)
One unpleasant cure for the U.S. trade deficit of the 1990s would be for foreigners who hold U.S. financial assets to demand
A. lower interest rates to stimulate U.S. growth rates. B. higher interest rates and generate a recession in the United States. C. higher interest rates and generate an appreciation of the dollar. D. lower interest rates and generate a depreciation of the dollar.
As coffee becomes more expensive, Joe starts drinking tea instead of coffee. This is called:
A. the income effect of a price change. B. a decrease in reservation price. C. a decrease in demand. D. the substitution effect of a price change.
Historically, what is the top remittance-receiving country in Latin America?
A) Brazil B) Mexico C) Uruguay D) Venezuela