Is it possible for a currency to appreciate relative to another currency, and depreciate relative to a third?
a. No, this is not theoretically possible; a currency rises or falls against all others.
b. No, although this could occur under a strict gold standard
c. Yes, this is possible in a world of floating exchange rates.
d. Yes, in theory, but it does not happen in reality.
c
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An income elasticity (Ey) of 2.0 indicates that for a ____ increase in income, ____ will increase by ____
a. one percent; quantity supplied; two units b. one unit; quantity supplied; two units c. one percent; quantity demanded; two percent d. one unit; quantity demanded; two units e. ten percent; quantity supplied; two percent
Which of the following statements is true?
a. Economic profit equals accounting profit minus implicit costs. b. The short run is any period of time in which there is at least one fixed input. c. A fixed input is any resource for which the quantity cannot change during the period under consideration. d. In the long run there are no fixed costs. e. All of these.
Which of the following policy actions by the Fed is likely to cause the money supply to decrease?
A. An open market purchase B. A decrease in required reserve ratios C. A decrease in the discount rate D. An open market sale
The supply curve for a monopoly and for a perfectly competitive industry are virtually identical.
Answer the following statement true (T) or false (F)