If monetary policy is used to set the market equilibrium value of the exchange rate equal to the official value, it is no longer available to:
A. stabilize the domestic economy.
B. decrease the market equilibrium value of an overvalued currency.
C. increase the market equilibrium value of an overloaded currency.
D. stabilize the market equilibrium value of the exchange rate.
Answer: A
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Dumping typically occurs because
A) the exporting country raises its prices to increase profits. B) the exporting country usually is experiencing a recession and has excess production. C) the importing country is experiencing a recession. D) the importing country has assessed significant tariffs.
If at the profit-maximizing level of output, a monopolist's average-total-cost curve lies above its demand curve, then:
a. the firm should shut down in the short run. b. the firm would earn economic losses. c. the firm would earn economic profits. d. the firm should increase its output. e. the firm should decrease its output.
John Steinbeck's Cannery Row describes a character who takes his own life because of poor job prospects. If he was an unemployed person who gave up looking for work, he would be considered:
a. a member of the labor force. b. chronically unemployed. c. frictionally unemployed. d. a discouraged worker.
Last year, Danielle bought a bond for $10,000 that promises to pay $350 a year. This year, a person who buys a bond for $10,000 receives $325 a year. If Danielle were to sell her (old) bond, its price would be approximately
A. $9,286. B. $10,769. C. $11,456. D. $9,119