Data shows that United States college students purchase more e-books than German college students. Assuming that all students have identical preferences for e-books and textbooks, what is the likely explanation for this result?
A) Taxes on textbooks are higher in the United States than taxes on textbooks in Germany.
B) Taxes on textbooks are lower in the United States than taxes on textbooks in Germany.
C) The price of textbooks is cheaper in the United States than textbooks in Germany.
D) Both A and C.
A
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Price ceilings and price floors
A) shift demand and supply curves and therefore have no effect upon the rationing function of prices. B) interfere with the rationing function of prices. C) make the rationing function of free markets more efficient. D) cause surpluses and shortages, respectively.
The risk of a borrower defaulting on a loan is known as:
A. default risk. B. credit risk. C. loan risk. D. asset risk.
The market demand curve is the horizontal summation of all individual demand curves.
Answer the following statement true (T) or false (F)
Suppose the nominal exchange rate — Canadian dollar per Brazilian real — is constant
If the price level in Brazil rises by four percent, while the price level in Canada rises by eight percent, then the real exchange rate — Brazilian goods for Canadian goods — has ________ by ________ percent. A) declined; one-half B) risen; one-half C) risen; two D) declined; four