One of the assumptions of an economic analysis is that market functions are controlled by the government
a. True
b. False
Indicate whether the statement is true or false
False
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According to the textbook, the noise of jet engines is not a negative externality for baggage handlers
A) because it leaves no residue in the environment. B) because the benefits are greater than the costs. C) because they are paid to live with the noise. D) because they wear hearing-protection devices. E) unless it leaves them with permanent hearing loss.
Relying on majority rule of voting will yield a social optimum of all products
Indicate whether the statement is true or false
Suppose we were analyzing the pound per Swiss franc foreign exchange market. If there is the expectation that the Swiss franc will rise in value in the near future, then in the spot market:
a. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market falls, causing an uncertain change in the value of the Swiss franc. b. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market rises, causing an appreciation of the Swiss franc. c. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market rises, causing an uncertain change in the value of the Swiss franc. d. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing a depreciation of the Swiss franc. e. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.
If Walmart buys $50 million worth of consumer goods from China and sells them in the U.S., and China uses the $50 million to purchase U.S. bonds, U.S. net exports and U.S. net capital outflow both fall
a. True b. False Indicate whether the statement is true or false