Refer to the given information. On the basis of its balance of payments position, and other things equal, we can expect the international value of Zippo's currency to:
The plus items below are “export-type” entries and the minus items are “import-type” entries in the balance of payments for the hypothetical country of Zippo.
A. increase.
B. decrease.
C. remain constant.
D. gyrate up and down.
C. remain constant.
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In any economy functioning at potential GDP, there are occasions when the short-term aggregate supply curve unexpectedly shifts, causing inflationary pressures. Which of the following is considered to be a common cause of this type of shift?
A. overoptimistic lending by banks B. sudden rise in input prices C. a surge of export sales D. a wave of government spending
The law of demand can be explained as:
A. a lot of people wanting the same thing. B. the higher the price, the smaller the quantity demanded, ceteris paribus. C. people are willing to make limited sacrifices to acquire products. D. legal reasons people make purchases in the marketplace.
In a bilateral monopoly with one buyer and one seller, the monopoly power of the seller and the monopsony power of the buyer tend to:
A) reinforce one another. B) counter-act one another. C) favor the buyer. D) favor the seller.
Explicit costs would include:
a. rent. b. the interest loss of the business owner on money withdrawn from his/her saving account and invested in the business. c. the loss of rent on a building the business owner owns and uses in his/her business. d. the opportunity costs of the business owner's time. e. the use of tools owned by the business owner and dedicated to the business.