Ceteris paribus, if Americans decide they want to drive more German-made cars, this causes the ________ German currency to ________.
A. supply of; increase
B. supply of; decrease
C. demand for; decrease
D. demand for; increase
Answer: D
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When a tax is placed on sellers:
A. sellers always bear a higher incidence than buyers. B. buyers always bear a higher incidence than sellers. C. the effect on the price buyers pay and sellers receive is the same as a tax on buyers. D. None of these is true.
If the Fed wants to stimulate aggregate demand it should _____ bonds to _____ the money supply.
A. buy; increase B. sell; increase C. buy; decrease D. sell; decrease
When Joe, who is among the highest-paid workers in a field in which there are numerous job openings across the nation, recently became unemployed, his opportunity cost of job search is
A. relatively low, so the length of his period of unemployment is likely to be long. B. average, so the length of his period of unemployment is likely to be long. C. relatively high, so the length of his period of unemployment is likely to be long. D. relatively high, so the length of his period of unemployment is likely to be short.
The emphasis upon export surpluses in mercantilist theory
(a) is also called the "beggar-thy-neighbor policy" and a "favorable" balance of trade. (b) was thought to be a good thing by business people because it meant that more money was circulating and more money meant higher prices and brisk trade. (c) was thought to be a good thing by governments because it created brisk trade which yielded higher tax revenues than did slack trade. (d) is characterized by all of the above.