Foreign exchange reserves are
A. Used by the Federal Reserve in open market operations.
B. Holdings of foreign exchange by official government agencies.
C. Holdings of foreign exchange by individual citizens.
D. Held illegally by many countries.
Answer: B
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Refer to Figure 3.2. Which assumption concerning preferences do Alvin's indifference curves violate?
A) Diminishing marginal rates of substitution B) Transitivity of preferences C) More is preferred to less D) Completeness E) both A and C
These two countries adopted reforms that liberalized their economies during the 1960s and they eventually became two of the world's freest economies. The two economies are
a. Russia and India. b. Nigeria and Zimbabwe c. Hong Kong and Singapore d. Brazil and Venezuela
Suppose that the labor market for life guards is initially in equilibrium. Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool. What happens to the equilibrium wage and quantity of life guards?
a. Both the equilibrium wage and quantity increase. b. Both the equilibrium wage and quantity decrease. c. The equilibrium wage increases, and the equilibrium quantity decreases. d. The equilibrium wage decreases, and the equilibrium quantity increases.
The two parts of the Keynesian consumption function are consumption that depends on ________ and consumption that depends on ________.
A. real income; nominal income B. planned spending; unplanned spending C. money; wealth D. disposable income; factors other than disposable income