Under fixed exchange rates, domestic asset transactions by the central bank
A) can be used to alter the level of foreign reserves but not to affect the state of employment and output.
B) cannot be used to alter the level of foreign reserves but only to affect the state of employment and output.
C) can be used to alter the level of foreign reserves and to affect the state of employment and output.
D) can be used to alter the domestic money supply and the level of foreign reserves.
E) can raise output to full-employment level.
A
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Jeremy is thinking of starting up a small business selling NASCAR memorabilia. He asks his friend, Carmen, if she'd like to join him in setting up a partnership to start the business
What is one disadvantage in joining the partnership that Carmen should consider? A) Carmen should realize that profits in the partnership will be reduced by dividend payments to shareholders. B) Carmen should realize that the Jeremy will have complete control over the business because it was his idea. C) Carmen should realize that, as an owner of the business, she will be personally responsible for the debts of the business. D) Carmen should realize that the profits of the business will also be taxed as dividend income, so she faces the potential for double taxation of that business income.
Which of the following is an example of a compensating differential?
a. Two workers with different levels of on-the-job training earn different salaries. b. Two workers whose jobs entail different working conditions earn different salaries. c. Two workers whose jobs require different levels of technical expertise earn different salaries. d. Two workers with different levels of natural ability earn different salaries.
If there is an expansionary gap in the short run, the adjustment to the long-run equilibrium involves expansion of aggregate demand
Indicate whether the statement is true or false
Refer to the graph below. The graph shows your weekly demand for pizza. How was this demand curve constructed?
