Holding other things constant, a decrease in the inflation rate in the US compared to the Canadian economy may cause the demand for the US dollar to _____________ and the supply to __________
a. Increase; decrease
b. Increase, increase
c. Decrease; Increase
d. Decrease; Decrease
a
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If Massage R Us, a spa chain specializing in massage, offers a lower price for a massage to senior citizens, this is an example of ________.
A) second-degree price discrimination B) first-degree price discrimination C) third-degree price discrimination D) zero-degree price discrimination
The money multiplier is approximated as being equal to:
A. one divided by the reserve ratio. B. one divided by the federal funds. C. demand deposits multiplied by the interest rate. D. demand deposits multiplied by the reserve ratio.
The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. The efficient level of output is
A) 2,000 tons. B) 3,000 tons. C) 4,000 tons. D) 5,000 tons.
When negative externalities exist, a voluntary agreement can be negotiated. Which of the following statements is TRUE?
A) Voluntary agreements usually do not work since the owner has no incentive to negotiate. B) Transactions costs must be low relative to the expected benefits of reaching an agreement. C) Voluntary agreements are difficult to negotiate because they usually involve government intervention. D) Voluntary agreements always leave the owner worse off.