Which of the following statement(s) best describes scarcity?
a. Even if the budget constraint or a PPF shifts, scarcity remains—just at a different level.
b. If the budget constraint shifts, scarcity disappears.
c. If a PPF shifts, scarcity disappears.
d. Scarcity is not dependent on the budget constraint or a PPF shift.
a. Even if the budget constraint or a PPF shifts, scarcity remains—just at a different level.
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The Federal Reserve discount rate is the rate of interest charged on loans from ________ to ________.
A. the U.S. Treasury; commercial banks B. commercial banks; the Federal Reserve C. the Federal Reserve; commercial banks D. the Federal Reserve; the U.S. Treasury
All used cars are lemons or peaches. Owners know whether or not their car is a lemon, but buyers do not; that is, the quality of a car is private information. There are many more buyers than sellers
Buyers value a peach at $4,000 and a lemon at $200; owners value a peach at $3,000 and a lemon at $100 . Owners can have their cars inspected for $100 . If they do have their car inspected, they will receive a certificate that shows whether the car is a lemon or a peach. Show that owners of peaches will have their cars inspected and will sell those cars for $4,000 . Show also that the owners of lemons will not obtain a certificate and will sell their cars for $200 .
Compared to high-income developed countries, the per person income levels of poorer less developed countries are somewhat understated because
a. the GDP figures omit the production within the household sector, which is generally larger in the high-income countries. b. the GDP figures omit the production within the household sector, which is generally larger in the poorer countries. c. the GDP figures omit net exports, which are generally larger in the high income countries. d. the GDP figures omit net exports, which are generally larger in the poorer countries.
The Exchange Rate Mechanism (ERM) was:
A) an attempt to bring all countries under a fixed exchange rate system. B) a fixed exchange rate system in Europe, with the Deutsche Mark as the anchor currency. C) a fixed exchange rate system in Europe, with the British pound as the anchor currency D) a fixed exchange rate system in use in the 1960s.