If one observes that Japan was traditionally a net foreign lender, one could conclude that relative to its international trade and financial partners
A) Japan's intertemporal production possibilities are biased toward present consumption.
B) Japan's intertemporal production possibilities are biased toward future consumption.
C) Japan's intertemporal production possibilities are larger than that of the other countries.
D) Japan's intertemporal production possibilities are not biased.
E) Japan preferred to consume beyond its production in the present.
A
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In the early 1930s
A) countries that abandoned the gold standard suffered severe inflation. B) countries that tried to defend the gold standard suffered more depression than countries that abandoned the gold standard. C) the gold standard was abandoned by every major industrial country except England. D) the United States was the first major industrial country to abandon the gold standard.
Suppose that Hannah spends $3 to buy five biscuits. The marginal utility of the fifth biscuit is valued at $0.60; total utility of the five biscuits is valued at $4.20 . Given this information, what do we know about consumer surplus?
a. It is impossible to determine consumer surplus without knowing the marginal utility of the first four biscuits. b. It is impossible to determine consumer surplus without knowing the price per biscuit. c. It is impossible to determine consumer surplus without knowing the price Hannah was willing to pay for the first five biscuits. d. Consumer surplus is equal to $2.40. e. Consumer surplus is equal to $1.20.
Suppose that a perfectly competitive market is in equilibrium, and then market supply decreases. Which of the following would happen?
a. both producer and consumer surplus would increase b. both producer and consumer surplus would decrease c. producer surplus would decrease and consumer surplus would increase d. producer surplus would increase and consumer surplus would decrease e. producer and consumer surplus would remain unchanged
Assuming the free flow of capital across borders, which of the following statements is most correct?
A. A central bank cannot have both a fixed exchange rate and an independent inflation policy. B. The central banks of most industrialized countries focus on fixed exchange rates. C. While most central banks of industrialized countries favor fixing exchange rates, their primary concern is on domestic inflation. D. A central bank can have both a fixed exchange rate and an independent inflation policy.