Political forces:
A. affect the price mechanism through cultural norms.
B. affect the price mechanism through scarcity.
C. do not affect the price mechanism.
D. affect the price mechanism through the legal system.
Answer: D
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How many dollars would it cost to buy an Edinburgh Woolen Mill sweater costing 50 British pounds if the exchange rate is 1.80 dollars per one British pound?
A) 40 dollars B) 90 dollars C) 50 dollars D) 100 dollars E) 95 dollars
When consumers have less information about a product than do sellers, then this is the situation of
A) asymmetric information. B) symmetric information. C) caveat emptor. D) a market failure.
An increase in the price of cheese crackers from $2.25 to $2.45 per box causes suppliers of cheese crackers to increase their quantity supplied from 125 boxes per minute to 145 boxes per minute. Using the midpoint method, supply is
a. elastic, and the price elasticity of supply is 1.74. b. elastic, and the price elasticity of supply is 0.57. c. inelastic, and the price elasticity of supply is 1.74. d. inelastic, and the price elasticity of supply is 0.57.
The balanced budget multiplier is always equal to:
A. 0.50. B. 0.75. C. 1 / MPC. D. 1.