The domestic demand and supply for sugar are Qd = 60,000 ? 400P and QSD = 20,000 + 500P. The foreign supply is QSF = 20,000 + 100P. Suppose an import quota of 13,000 is imposed in the domestic market. What will be the new market price of sugar?
A. $30
B. $15
C. $45
D. $20
Answer: A
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The distinction between exogenous and endogenous variables is important because:
a. Endogenous variables are determined within the Three-Sector-Model while exogenous variables are not. Exogenous variables are therefore treated as shocks to the Three-Sector-Model. b. Exogenous variables are fixed by definition. c. Endogenous variables are fixed by definition. d. Exogenous variables are determined within the Three-Sector-Model while endogenous variables are not. Endogenous variables are therefore treated as shocks to the three markets. e. Endogenous variables are real factors while exogenous variables are nominal factors.
The aggregate savings in an economy is $1,750 and the GDP of the economy is $55,000. The savings rate in the economy is:
A) 1.8%. B) 3.15%. C) 10%. D) 8.96%.
If the Fed decided to target price levels and inflation was lower than its target for a period of time, the Fed would be required to
A) permanently raise inflation above its target to reach and maintain its price level target. B) permanently lower its price level target to align it with the inflation rate. C) temporarily lower its inflation target to match its price level target. D) temporarily raise inflation above its target to reach its price level target.
Stephanie wants to buy a laptop . She has chosen a particular model. However, before ordering it online, she decided to read some of the user reviews provided in the Web site
She happened to overlook the negative feedback of some users and focused only on the positive ones. This is an examples of a(n) ________ bias. A) attenuation B) distinction C) attentional D) confirmation