An increase in the demand for a good means that:
a. the demand curve has shifted to the left.
b. the good's price has fallen and, as a result, consumers are buying more of the good.
c. the good has become scarce.
d. consumers are willing to purchase more of the good at each possible price.
d
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Use the following table showing maximum-output alternatives for Brazil and Poland to answer the next question.CountryWineMachinesBrazil3010Poland1010If the two nations open up trade with each other, then
A. Brazil will not gain from specializing and trading, but Poland will gain. B. Brazil will specialize in producing machines and import wine. C. Poland will specialize in producing machines and import wine. D. Poland will export wine.
In constructing the CPI, the BLS has to deal with commodity substitution bias, which is defined as
A) consumers' substitution of discount stores for full service stores to avoid the higher prices in the full service stores. B) consumers' substitution of cheaper goods for goods whose prices increase. C) the bias from quality changes in existing products that cause prices to increase. D) the bias from new goods being introduced that are more expensive than older goods. E) the bias that arises because the BLS changes the CPI market basket each month.
When the Fed buys bonds on a mass scale
A) bonds go to the Fed, and dollars go into the banking system, so the money supply tends to rise. B) bonds go to the Fed, and dollars exit the banking system, so the money supply tends to fall. C) banks have more bonds and fewer dollars, so the money supply tends to fall. D) banks have more bonds and fewer dollars, so the money supply tends to rise.
How is the interest rate that prevails in the bond market determined?
A) by the interaction of stock prices and bond prices B) by the decision of the president, in consultation with Congress C) by the demand for and supply of bonds D) by the Board of Governors of the New York Stock Exchange