One reason the theory of purchasing power parity may not explain price differences between countries is:
A. nominal exchange rates are flexible.
B. some products do not trade.
C. inflation rates differ across countries.
D. real exchange rates are almost impossible to calculate.
Answer: B
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The text defines persuasion as inducing others to cooperate by
A) either threats or promises. B) employing deception. C) offering people additional options. D) providing monetary payments. E) using verbal arguments.
Refer to the above figure. Suppose the demand curve shifts from DA to DB, while the supply curve remains at SA. Which of the following statements is FALSE?
A) There has been an increase in demand. B) Supply has increased. C) More consumers in the market might have caused the demand curve to shift. D) The new equilibrium price is P2, and the new equilibrium quantity is F.
In a command economy:
a. economic effort is devoted to goals passed down from a ruler or ruling class. b. economic effort is commanded by the people of a country. c. there is no coordinated economic effort. What you produce is what you get to consume. d. economic effort is determined by the government, businesses, and the people of a country.
Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. The frictional unemployment rate is _________ percent and the actual unemployment rate (in this economy) is ___________ percent.
a. 7.5; 3.3 b. 4.2; 11.7 c. 7.3; 3.1 d. 3.1; 7.3