If the dollar depreciates relative to other currencies, which of the following is true?
a. It takes more of the other currency to buy a dollar
b. It takes less of the other currency to buy a dollar.
c. There is no change in the amount of the currency needed to buy a dollar.
d. Not enough information to determine.
b
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Only individuals choose, which means
A) only individuals exist. B) collectives do not exist. C) only individuals can assess the expected costs and benefits of an action. D) all of the above.
In the competitive market for balloon rides, marginal social cost equals marginal social benefit when 3,000 balloon rides a day are taken and the price of a ride is $130. Which of the following statements is TRUE?
A) There is a free-rider problem. B) Too many rides are available. C) Too few rides are available and the price of a balloon ride is too high. D) The efficient quantity of balloon rides is 3,000 a day.
A demand curve is described as perfectly inelastic if
A. the same quantity is purchased regardless of price. B. the same price is charged regardless of quantity sold. C. neither price nor quantity demanded ever change. D. only quantity demanded can change.
Which of the following is the most likely cause of most recessions according to the new classical model?
a. a change in the money supply. b. an increase in taxation and government spending. c. a fall in expected profits. d. a rise in the price of oil. e. an unanticipated change in the money supply.