In the early 2000s, there was a strong black market for Chinese yuan. It is widely held that the Chinese yuan is undervalued. Based on this information, we know that China:
A. has flexible exchange rates.
B. does not allow complete convertibility of its currency.
C. has partially flexible exchange rates.
D. has fixed but convertible exchange rates.
Answer: B
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A map is an example of a model because a map
A) realistically describes an area. B) is always as complex as space will permit. C) is two-dimensional. D) is a simplified representation of reality.
When unemployment insurance benefits exceed the wages a worker could earn when employed, the worker will have an incentive to:
A. have his/her unemployment insurance benefits cancelled. B. decrease his/her reservation price. C. remain unemployed longer than otherwise. D. accept the first job offered.
Refer to the diagrams. The demand for Firm B's product is:
A. perfectly elastic over all ranges of output.
B. perfectly inelastic over all ranges of output.
C. elastic for prices above $4 and inelastic for prices below $4.
D. inelastic for prices above $4 and elastic for prices below $4.
An entrepreneur is a(n)
a. individual who has much education b. organizer who seeks profitable opportunities and is willing to accept risks c. business organization that uses inputs to produce output d. administrator who runs an enterprise without accepting any risk of financial loss e. depot or storehouse for commercial products