In the short run, there are large and persistent deviations between actual exchange rates and exchange rates predicted using purchasing power parity because of:
a. Discretionary fiscal policy.
b. Widely different inflation rates in the two nations.
c. Very different real GDP growth rates in the two nations.
d. Many goods and services in the two nations' price indices are not traded internationally.
e. All of the above.
.D
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The marginal product of the fourth gizmo worker hired is
A) 1. B) 3. C) 5. D) 10.
Originally, the threshold income level used to determine official poverty statistics was based on
A) a per capita income of $3000 in 1955 prices. B) the lowest income of the second quartile of families in the country. C) an income three times greater than necessary to purchase a nutritionally adequate diet. D) figures developed by a committee in the American Economic Association.
All of the following statements present accurate information about 18th century New England except:
a. New England exported more fish than England. b. Indian Corn was an important agricultural produce in New England. c. New England had plentiful supplies of timber. d. New England farms were large and highly productive.
If the intended aim of the price floor set in the graph shown was a net increase in the well-being of producers, then normative analysis would conclude that:
A. the policy was effective, since surplus gained by producers through higher prices is greater than the surplus they lost through deadweight loss.
B. the policy was ineffective, since surplus gained by producers through higher prices is greater than the surplus they lost through deadweight loss.
C. the policy was effective, since surplus gained by producers through higher prices is greater than the surplus lost by consumers through higher prices.
D. there is no "right" conclusion to be reached in a normative sense, since people have different opinions concerning what constitutes a better outcome.