The law of demand states that
a. there is a positive relationship between price and quantity demanded
b. price is the only factor that influences the quantity that people are willing and able to buy
c. price and quantity demanded are inversely related
d. the demand curve shifts whenever the price of a good changes
e. by producing a product, firms create a demand for it
C
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A worldwide hops (a flowers used in brewing) shortage made stouts, ales and other specialty microbrews more pricy in 2008. A triple whammy of bad weather in Europe, an increase in the price of barley and a decrease in hops production in the U.S
led to a price increase of 20 percent for the most widely grown varieties, to 80 percent for specialty hops. What is the effect of this hops shortage on a microbrewery's cost curves? A) Short run fixed costs would increase. B) Short run total costs would decrease. C) Short run average variable costs would decrease. D) Short run variable costs would increase.
The Fed's current position towards the existing monetary aggregates is
A) it is convinced that M1 is the best measure of the money supply. B) it is convinced that M2 is the best measure of the money supply. C) it is an issue of ongoing research. D) it is reverting to considering currency alone as the best measure of the money supply.
Answer the following questions true (T) or false (F)
1. If currency speculators decide that the value of the dollar should rise in the future relative to the yen, this will increase the demand for dollars and decrease the supply of dollars. 2. A real appreciation of the dollar is caused by either a nominal appreciation of the dollar, a rise in the foreign price level, or a fall in the U.S. price level. 3. A rise in the dollar price of the Chinese yuan signals an appreciation of the yuan and a depreciation of the dollar.
The United States' exports are approximately what percentage of U.S. GDP?
A. 3-4 percent. B. 20-25 percent. C. 14-17 percent. D. 30-34 percent.