The goal of internal balance includes
A. a reasonable and sustainable balance of payments with the rest of the world.
B. low interest rates.
C. full employment of resources.
D. exchange rate stability.
Answer: C
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A health club requires six-months advanced payment. A commuter railroad offers discounted monthly tickets. What do they clearly have in common?
A) They are earning profits. B) They are selling short. C) They are exploiting customers. D) They are facing financial problems.
Why can cross price elasticity of demand be positive or negative, unlike the price elasticity of demand with respect to the item's own price?
What will be an ideal response?
Angelina Jolie's economic rent from starring in a movie is equal to the difference between:
A. her final salary and what she could earn by starring in a different movie. B. her final salary and the least she would be willing to accept to star in the movie. C. her initial salary offer and her final salary, including royalties. D. her final salary and the average salary for leading actresses.
The "housing bubble" discussed in the text book refers to:
A. housing prices rising much more quickly than the rest of prices in the economy. B. an unexplained increase in the demand for houses which caused the prices of houses to rise. C. a supply shock to the housing market, which caused housing prices to increase. D. housing prices within a certain area of the U.S. rising disproportionately with the rest of houses in the economy.