The supply curve for a normal good always slopes downward because a rise in the price of a normal good almost always leads to an increase in the quantity supplied of that good
a. True
b. False
Indicate whether the statement is true or false
False
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Which balance of payments account records payments for imports and exports?
A) reserves account B) capital and financial account C) current account D) official settlements account E) trade account
Suppose a 4 percent increase in income results in a 2 percent decrease in the quantity demanded of a good. Calculate the income elasticity of demand for the good and determine what type of good it is
What will be an ideal response?
The supply of foreign exchange to the United States is generated by the desire for foreigners to acquire dollars for all except one of the following reasons. Which is the exception?
a. The United States is considered a safe haven in times of political unrest. b. The dollar has long been accepted as an international medium of exchange. c. Foreigners want to buy U.S. assets. d. U.S. goods have become less attractive to foreigners. e. Foreigners wish to make cash gifts to family in the United States.
In Figure 4.2, at quantities at Q1:
A. price and total revenue are unrelated. B. total revenue is maximized. C. price elasticity equals 1. D. All of these