The market demand for most goods will
A. increase if the prices of substitutes fall.
B. decrease if the price of complementary goods fall.
C. increase if consumers expect prices to be higher in the future.
D. decrease if consumers expect the goods to become less available.
C. increase if consumers expect prices to be higher in the future.
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Assume the government reduces government spending. What is the first round effect on the components of the balance of payments (assume low international capital mobility and fixed exchange rates; also assume that before the government action all the components were 0)? a. Current international transactions balance and reserves account become positive; net nonreserve international
borrowing/lending balance becomes negative. b. Current international transactions balance becomes positive; net nonreserve international borrowing/lending balance and reserves account become negative. c. Net nonreserve international borrowing/lending balance becomes positive; current international transactions balance and reserves account becomes negative. d. Net nonreserve international borrowing/lending balance and reserves account become positive; current international transactions balance becomes negative. e. Reserves account becomes positive; current international transactions balance and net nonreserve international borrowing/lending balance become negative.
Suppose an oligopolistic firm assumes that its rivals will ignore a price increase but match a price cut. In this case, the firm perceives its demand curve to be:
A. kinked, being steeper above the going price than below. B. kinked, being steeper below the going price than above. C. linear, being more elastic at higher prices. D. linear, being less elastic at lower prices.
Money is useful because it serves as a
A. never wears out. B. good memorial to national leaders. C. stimulus to the printing industry. D. medium of exchange.
Refer to the information provided in Table 20.4 below to answer the question(s) that follow. Table 20.4GermanyChileBeerWineBeerWine(cases)(cases)(cases)(cases)75030 060152412453018 24304512 361560 6 48075 0 60 Refer to Table 20.4. In Chile, the opportunity cost of 1 case of wine is
A. 1/2 case of beer. B. 1 case of beer. C. 2 cases of beer. D. 4 cases of beer.