If a transaction in the balance of payments of Country A enters the foreign exchange market, then it is fair to say that:
a. Sources of funds in Country A's balance of payments are supplies of Country A's currency to the foreign exchange market.
b. Uses of funds in Country A's balance of payments are demands for Country A's currency in the foreign exchange market.
c. Uses of funds in Country A's balance of payments are supplies of Country A's currency in the foreign exchange market.
d. Transactions in Country A's balance of payments have no counterpart in the foreign exchange market.
.C
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Use the figure below to answer the following question.
If a price ceiling in this market is set at P1, then deadweight loss equals area
A. f. B. b + d. C. d. D. d + h.
Michael consumes only steak and lobster. Suppose that the price of steak rises. After Michael is back at equilibrium, compared to the situation when steak was cheaper, the marginal utility from the last steak will
A) have increased. B) not have changed. C) have decreased. D) not be comparable with the marginal utility before the price hike.
Your teacher decides to play a game where every student must contribute a dollar. All money collected is distributed at the end of the game among the students. This is an example of a
A) positive-sum game. B) zero-sum game. C) strategy. D) negative-sum game.
The hypothesis that people believe the best indicator of the future is the recent past is known as:
a. rational expectations. b. adaptive expectations. c. lagged expectations. d. trend expectations.