Thailand's experience with pegging the baht to the dollar failed because the baht was ________ relative to the dollar, and China's experience with pegging the yuan to the dollar has run into difficulties because the yuan has been ________ relative to
the dollar.
A) overvalued; undervalued B) undervalued; undervalued
C) undervalued; overvalued D) overvalued; overvalued
A
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Which of the following episodes would most likely contain an externality?
A) You cannot afford to buy groceries. B) You decide to grow your own vegetables in your backyard where no one else can see them. C) You decide to grow flowers in your front yard where everyone else can see them. D) You eat all the vegetables you grow yourself.
Alan Krueger conducted a survey of fans at the 2001 Super Bowl who purchased tickets to the game for $325 or $400
Krueger found that (a) 94 percent of those surveyed would not have paid $3,000 for their tickets, and (b) 92 percent of those surveyed would not have sold their tickets for $3,000. These results are evidence of A) the high value fans place on watching the Super Bowl in person, rather than on television. B) the failure of consumers to ignore sunk costs. C) consumers being overly optimistic about their future behavior. D) the failure of consumers to take into account nonmonetary opportunity costs.
When people are considered risk averse, they:
A. generally have a high willingness to take on risk. B. generally have a low willingness to take on risk. C. will only participate in low-risk activities. D. will never accept risk in any situation.
Refer to the following graph.
The Gini coefficient is calculated as area:
A. A divided by area A + B. B. A divided by area B. C. A + B divided by area B. D. B divided by area A.