If households pay a fixed annual fee for trash disposal,
A) households will all tend to produce the same amount of garbage.
B) households have no incentive to cut back on the amount of garbage they generate.
C) that fee will provide households with an incentive to cut back on the amount of garbage they generate.
D) that fee will discourage households from throwing out reusable materials.
E) that fee will discourage households from throwing out toxic or otherwise harmful materials.
B
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Assuming everyone wants to advance their interests in an effective way is an assumption of
A) capitalism. B) economic theory. C) government. D) selfishness.
Financial intermediaries provide customers with liquidity services. Liquidity services
A) make it easier for customers to conduct transactions. B) allow customers to have a cup of coffee while waiting in the lobby. C) are a result of the asymmetric information problem. D) are another term for asset transformation.
An increase in the expected future domestic exchange rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
Suppose that a haircut in your hometown costs $20, while the price for the same haircut in Mumbai is 600 Indian rupees. At which nominal exchange rate is the dollar price lower for the Mumbai haircut?
A) 0.029$/Rs. B) 20Rs./$ C) 25Rs./$ D) 0.04$/Rs.