If U.S. consumers increase their spending on hybrid cars by 60 percent, and 60 percent more hybrid cars are produced, this is known as the
A) majority rule.
B) proportional rule.
C) government rule.
D) profit rule.
B
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Firms in oligopoly can achieve an economic profit
A) always in the long run. B) if they cooperate. C) only if the demand for their products is inelastic. D) only if the demand for their products is elastic. E) if they reach the non-cooperative equilibrium.
Gretchen expects the price level to rise from 104 this year to 108 next year, and she is able to incorporate these expectations into her wage contract. If the price level rises to 106 next year instead of 108, which of the following will occur?
A) Gretchen's real wage may rise or fall, depending on the unemployment rate. B) Gretchen's real wage will rise. C) Gretchen's real wage will fall. D) Gretchen's real wage will be unchanged.
Borrowing in foreign currencies to spend or invest domestically,
a. decreases demand for the domestic currency, appreciating the domestic currency b. increases demand for the domestic currency, depreciating the domestic currency c. increases demand for the domestic currency, appreciating the domestic currency d. does not affect the exchange rates
Risk pooling:
A. reduces the chances of catastrophes happening. B. lowers the costs of catastrophes when they occur. C. allows individuals the peace of mind that they will never have to pay the full expense of a catastrophe if it hits them. D. All of these statements are true.