Suppose both supply and demand decrease. What effect will this have on price?

A. It will remain the same.
B. It will fall.
C. It will rise.
D. It may rise or fall.


Answer: D

Economics

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Some central banks pursue price stability before they pursue other goals. Which of the following central banks have this kind of hierarchical mandate?

i. Bank of England ii. Bank of Canada iii. European Central Bank iv. Federal Reserve (U.S.A.) A) i, ii, and iv only B) i and iii only C) i and iv only D) ii, iii, and iv only E) none of the above

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If the U.S. dollar depreciates in the foreign exchange market, American exports will be __________ and American imports will be __________

a. more expensive; more expensive b. cheaper; cheaper c. less expensive; less expensive d. less expensive; more expensive e. there will be no change

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To prove an offence under the rule of reason, the government need only show that an offending practice took place

Indicate whether the statement is true or false

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Suppose option A has a lower expected value than option B. Which of the following statements is, in general, true?

A. A risk-neutral person is indifferent between options A and B. B. A risk-averse person prefers option B to option A. C. A risk-averse person prefers option A to option B. D. Insufficient information to determine.

Economics