Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, what effect would these flows have had on Venezuela's overall balance and value of the Bolivar (the Venezuelan currency)?
a. Overall balance would rise and value of the Bolivar would fall.
b. Overall balance would not change and value of the Bolivar would fall.
c. Overall balance would fall and value of the Bolivar would not change.
d. Overall balance would fall and value of the Bolivar would fall.
e. Overall balance would fall and value of the Bolivar would rise.
.C
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According to the law of increasing costs, as the United States expends more of its resources on reducing air pollution,
A. the quantity of other goods that must be given up for further reductions in air pollution will decrease. B. the quantity of other goods that must be given up for further reductions in air pollution will increase. C. the social cost of additional air pollution will increase. D. there will be no change in the marginal cost of reducing air pollution.
Suppose a player can play 2 possible actions and has 5 possible decision nodes in a sequential game. Then he has 10 possible strategies he can play.
Answer the following statement true (T) or false (F)
Ceteris paribus, according to the law of supply, if the price of lawn mowing decreases from $50 per lawn to $45 per lawn, then the:
A.) Quantity supplied of lawn mowing will decrease. B.) Supply curve for lawn mowing will shift to the right. C.) Quantity supplied of lawn mowing will increase. D.) Quantity supplied of lawn mowing will stay the same.
If demand increases and supply decreases
A) the market clearing price definitely will increase, and the equilibrium quantity definitely will increase. B) the market clearing price definitely will increase, and the equilibrium quantity definitely will decrease. C) the market clearing price definitely will increase, but the change in the equilibrium quantity cannot be determined without more information. D) the equilibrium quantity definitely will decrease, but the change in the market clearing price cannot be determined without more information.