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.
B
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The benefits of international trade are derived from trade in
A) tangible goods only. B) intangible goods only. C) goods but not services. D) services but not goods. E) anything of value.
Which of the following best represents the money supply?
A) Money supply = Monetary base. B) Money supply = Monetary base / Money multiplier. C) Money supply = Money multiplier ( Currency in circulation + Reserves). D) Money supply = (Currency in circulation + Reserves) / Money multiplier.
A market in which national currencies are traded by households, firms and governments, is referred to as a(n)
A) foreign exchange market. B) fed funds market. C) international reserves market. D) gold certificate market.
Suppose two coffee snobs who must have their coffee and cream in exact proportions (each cup is 10 coffee per 1 unit cream) are invited to a weekend long event (during which they can easily consume 8 cups of coffee). Suppose Snob A is given 8 units of cream and Snob B is given 80 units of coffee. The post trading result (one in which any trade that makes both parties better off than their initial
allocation) will guarantee each person a. nothing b. at least 1 cup of properly made coffee. c. at least 2 cups of properly made coffee. d. exactly 4 cups of properly made coffee.