If a financial portfolio manager in the U.S. buys British company stocks in the London Stock Exchange, this would result in ________.
A. an increase in the demand for U.S. dollars in the foreign exchange market
B. an increase in the supply of British pounds in the foreign exchange market
C. no effect on the demand for British pounds in the foreign exchange market
D. an increase in the demand for British pounds in the foreign exchange market
Answer: D
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Consider a competitive market in which people consume at the point where their marginal rates of substitution between products X and Y are 3/5
In this same market, producers produce where their marginal rates of transformation between X and Y are also 3/5. However, producers are producing 7 of Y and 3 of X, and consumers wish to consume 5 of Y and 5 of X per unit of time. Explain how this situation can exist. Also determine if it represents an equilibrium or not. If not an equilibrium, what will tend to happen in the market?
If the price of pizzas has risen from $4 to $5 at the same time that the price of an hour of spinning class has risen from $20 to $30, then
a. pizzas have become relatively more expensive. b. spinning classes have become relatively more expensive. c. the relative prices of pizzas and spinning classes have remained constant. d. workers' real income must have decreased.
Which is not considered to be an economic resource?
A. Tools and machinery B. Money C. Labor D. Land (or other natural resources)
A public good is a good that:
A. is excludable. B. is rival. C. is free. D. is available regardless of willingness to pay.