If a British student pays her way to attend Harvard University, her action will:
A) cause the exchange rate of the British pound to rise.
B) cause the exchange rate of the U.S. dollar to fall.
C) change the supply of dollars in the foreign currency market.
D) change the supply of pounds in the foreign currency market.
Ans: D) change the supply of pounds in the foreign currency market.
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Rational choice
A) is a choice that uses the available resources to best achieve the objective of the person making the choice. B) is always efficient. C) is what you must give up to get what you want. D) is made by comparing different incentives. E) provides the answer to only the "how" question.
Elasticities measure the response of one variable to random shocks from unknown factors
Indicate whether the statement is true or false
Those who believe that overall economic growth is more important than the distribution of income would say that:
A. if the society is not getting richer, then things can never become more equal. B. it is fundamentally unjust for some people to have so much when others have so little. C. if everyone is getting richer, the relative speed of these gains isn't as important. D. All of these are true.
Refer to the accompanying table. Martha's opportunity cost of making of a pie is: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. 80 cakes. B. 8 cakes. C. 3/4 of a cake. D. 4/3 of a cake.