Figure 3.4 illustrates the demand for tacos. A decrease in the price of tacos would bring about a movement from:
A. point a to point c.
B. point c to point a.
C. D2 to D0.
D. D0 to D2.
Answer: A
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A study by economists at the International Monetary Fund compared increases in inflation rates in countries with and without specific inflation targets based on the surge in oil prices in 2007. The results provide
A) no evidence that countries with specific inflation targets were any better off than countries without specific inflation targets. B) evidence that countries with specific inflation targets actually experienced greater increases in inflation than did countries without specific inflation targets. C) evidence that countries with specific inflation targets did experience lower increases in inflation than did countries without specific inflation targets. D) evidence that countries with specific inflation targets experienced no increases in inflation, whereas countries without specific inflation targets experienced significant increases in inflation.
Suppose the demand for pizza in a small isolated town is p = 10 - Q. There are only two firms, A and B. Each has a cost function TC = 2 + Q. Determine the equilibrium quantities of each if firm A is the Stackelberg leader
What will be an ideal response?
Which of the following statements accurately describes the situation when 1 euro is valued at $2?
a. 2 euros can be exchanged for $1. b. $1 can be exchanged for 0.50 euro. c. 1 euro can be exchanged for $0.50. d. $1 can be exchanged for 1 euro.
Ava buys a $2,000 computer using a paper check. At which step does $2,000 get recorded in M1?
A. When Ava hands the $2,000 check to the computer merchant. B. Once the Federal Reserve sends the paper check (or an electronic image) to Ava's bank. C. The check is never M1. The $2,000 is M1 both in Ava's bank account and, later, in the merchant's account. It is the deposit balance that is counted. D. Once the $2,000 is credited to the merchant bank's reserve account and is debited from Ava's bank account.