Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, what effect would these flows have had on Venezuela's reserves account and value of the Bolivar (the Venezuelan currency)?
a. Reserves account would rise and value of the Bolivar would fall.
b. Reserves account would not change and value of the Bolivar would fall.
c. Reserves account would fall and value of the Bolivar would not change.
d. Reserves account would fall and value of the Bolivar would fall.
e. Reserves account would fall and value of the Bolivar would rise.
.B
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Given an initial allocation of resources that is off the consumption contract curve, in a perfect market environment without externalities and imperfect information,
A. one can end up at only one spot on the contract curve. B. both indifference curves could move to a higher level of utility. C. one can end up at any point on the contract curve. D. only one of the indifference curves could move to a higher level of utility.
The marginal tax rate is
A. the percentage of all dollars of income paid in tax. B. the percentage of the last dollar of income paid in tax. C. the percentage of all dollars of income paid in tax and the percentage of the last dollar of income paid in tax. D. the percentage of all taxable dollars of income paid in tax.
In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total fixed cost must be:
a. $25. b. $2,500. c. $5,000. d. $7,500.
Setting specific goals for reducing sulfur dioxide (SO2) and nitrogen oxides (NOX) to combat acid rain was the objective of the international agreement
a. between the United States and Canada b. between the United States and Mexico c. among all nations in the European Union d. among the United States, Canada, and Mexico