A government mandated price increase for doodads will:
a. decrease the quantity of doodads supplied but increase the quantity of doodads demanded.
b. increase the quantity of doodads supplied but decrease the quantity of doodads demanded.
c. increase the demand for doodads and decrease the supply of doodads
d. decrease the demand for doodads and increase the supply of doodads.
b
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Suppose the supply of farmland is infinitely inelastic and the demand for land is downward sloping but inelastic at the current equilibrium
If the supply curve shifts leftward (e.g., some farmland is permanently converted to other uses), what happens to the aggregate economic rents in this market? A) Decrease B) Increase C) Remain the same D) We do not have enough information to answer this question.
A family on a trip budgets $800 for restaurant meals and fast food. The family can buy 16 restaurant meals if they don't buy any fast food. What is the price of a fast-food meal for the family?
a. $5 b. $16 c. $20 d. $50 e. it is impossible to tell from the information given
The policy ineffectiveness proposition (PIP) argument states that under certain circumstances, neither expansionary demand-side fiscal policy nor expansionary monetary policy is effective at achieving macroeconomic goals
Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1. Present-day fluctuations in exchange rates are determined solely by market forces. 2. When exchange rates change, they affect not only the currency market but the product markets as well. 3. Since the advent of flexible exchange rates, world trade has expanded. 4. The most important advantage of the Bretton Woods fixed-rate system is that it has reduced the speculative rampages that were common under a flexible-rate system. 5. Booming futures markets in foreign currencies opened in Chicago, New York, and in foreign financial centers during the years that the world used the Bretton Woods system.