If the exchange rate is .60 British pounds = $1, a bottle of ale that costs 3 pounds costs
a. $1.80.
b. $4.80.
c. $5.
d. None of the above is correct.
c
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Redistributing income from the rich to the poor creates inefficiency because
A) of wasteful expenditures by people receiving welfare grants. B) of the administrative costs to operate the government redistribution agencies. C) the redistribution creates an incentive to produce less output. D) Both answers B and C are correct. E) Both answers A and C are correct.
For small investors, the best way to pursue a "buy and hold" strategy is to
A) buy and sell individual stocks frequently. B) buy no-load mutual funds with high management fees. C) buy no-load mutual funds with low management fees. D) buy load mutual funds.
A price index can be computed by
A) dividing a nominal variable by its real counterpart. B) dividing a real variable by its real counterpart. C) subtracting the nominal variable from its real counterpart. D) subtracting the real variable from its nominal counterpart.
The slower the rate of capital formation: a. the greater the rate of economic growth
b. the slower the rate of economic growth. c. the greater the rate of population growth. d. the slower the rate of growth of the money supply.