Suppose there is new fertilizer technology which allows avocados to be grown using less water, how might this affect the market for avocados?
A. Price decreases and quantity increases
B. Price increases and quantity increases
C. Price decreases and quantity decreases
D. Price increases and quantity decreases
Answer: A
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A key aspect of the principal-agent problem is that
A) the principal cannot perfectly monitor the agent's actions. B) the principal can perfectly monitor the agent's actions. C) the output level does not depend on the agent's actions. D) the principal is always risk-averse.
Answer the following statements true (T) or false (F)
1. Special Drawing Rights are issued by the International Monetary Fund and are a principal source of international reserves. 2. The dollar shortage of the 1950's came about because the economies of foreign countries became competitive with the United States. 3. In the 1970's, the value of the U.S. dollar in world financial markets declined significantly. 4. The United States devalued the dollar twice in the 1970's to alleviate the world’s dollar shortage. 5. In the first half of the ', the value of the dollar was allowed to increase sharply to promote U.S. exports.
An increase in aggregate demand leads to the strongest increase in the price index, when the economy is in the:
a. Classical range. b. Keynesian range. c. Intermediate range. d. There is not enough information to tell. e. None of the above.
According to Buchanan and Wagner, why is there a political bias toward expansionary fiscal policy rather than contractionary fiscal policy?
A) In a democracy, expansionary fiscal policy prescriptions are more politically popular than are the policy prescriptions associated with contractionary fiscal policy. B) In a democracy, contractionary fiscal policy prescriptions are more policitally popular than are the policy prescriptions associated with expansionary fiscal policy. C) They assert that empirical evidence has shown that Keynesian fiscal policy prescriptions have been successful at closing recessionary gaps, but not inflationary gaps. D) ?They assert that empirical evidence has shown that Keynesian fiscal policy prescriptions have been successful at closing inflationary gaps, but not recessioinary gaps. E) ?none of the above