Other things constant, a ________ price ________ quantity demanded
A) higher; increases
B) lower; increases
C) higher; decreases
D) lower; decreases
E) both B and C above.
E
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Liz has a comparative advantage in ________ and an absolute advantage in ________
A) smoothies only; both goods B) salads only; salads only C) both goods; both goods D) salads only; both goods E) smoothies only; smoothies only
The larger the portion of a person's total budget spent on a good, the more inelastic the demand for the good
Indicate whether the statement is true or false
Macland is running a budget deficit and has issued new treasury bonds. Foreign investors are eager to buy the newly issued bonds but to do so must have Macland currency. What effect does this budget deficit have on the value of Macland’s currency?
a. The exchange rate will not change. b. The exchange rate will depreciate. c. The exchange rate will appreciate. d. The exchange rate will decrease.
If a price is above equilibrium,
A. A shortage will cause the price to rise and the quantity supplied to increase. B. A surplus will cause the price to fall and the quantity supplied to increase. C. A surplus will cause the price to fall and the quantity supplied to decrease. D. A shortage will cause the price to fall and the quantity supplied to decrease.