Refer to the information provided in Figure 20.3 below to answer the question(s) that follow.
Figure 20.3Refer to Figure 20.3. The domestic price of shoes is $80. After trade the price of a pair of shoes is $60. After trade this country will import
A. 100 pairs of shoes.
B. 200 pairs of shoes.
C. 300 pairs of shoes.
D. 1,300 pairs of shoes.
Answer: C
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Inflation can be defined as
A) an increase in the purchasing power of money. B) a decrease in the purchasing power of money. C) no change in the purchasing power of money. D) an increase in real income.
When the demand for grapes increases and the supply of grapes decreases at the same time, we can predict that the: a. price of grapes will fall
b. price of grapes will rise. c. quantity of grapes exchanged will fall. d. quantity of grapes exchanged will rise.
Which group is always harmed by inflation?
a. Borrowers b. Lenders c. Businesses d. Variable income earners (e.g. workers) e. Fixed income earners with no supplementary benefits and few assets.
The optimal amount of pollution is NOT zero because
A) it has been found that pollution in moderate amounts actually has positive benefits. B) there are no benefits to anyone from having zero pollution. C) zero pollution would be too costly. D) we don't have the political structure that could accomplish the goal.