Consumer surplus measures the value between the price consumers are willing to pay for a product and the preference price
a. True
b. False
Indicate whether the statement is true or false
False
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When are net exports negative?
A. A nation's imports exceed its exports. B. A nation's exports exceed its imports. C. The economy's stock of capital goods is declining. D. Depreciation exceeds domestic investment.
Figure 5-12
In Figure 5-12, the move in the consumer equilibrium from A to B shows that
A. beer is an inferior good, but wine is a normal good. B. wine is an inferior good, but beer is a normal good. C. both beer and wine are normal goods. D. both beer and wine are inferior goods.
The increase in the demand for widgets, shown in the figure above, is the result of an increase in the price of McBoover devices. Therefore
A) widgets and McBoover devices are substitutes. B) widgets and McBoover devices are complements. C) widgets are a normal good. D) McBoover devices are a normal good.
According to purchasing-power parity which of the following would happen if a country raised its money supply growth rate?
a. its nominal exchange rate would fall b. its real exchange rate would fall c. its real net exports would rise d. All of the above would happen.