The only reason paper currency (e.g., the dollar bill) is accepted as money in the United States today is because it is backed by gold
Indicate whether the statement is true or false
F
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Farmers can plant either corn or soybeans in their fields. Which of the following would cause the supply of soybeans to increase?
A) an increase in the demand for corn B) an increase in the price of soybeans C) a decrease in the price of corn D) an increase in the price of soybean seeds
Which of the following is not an example of a two-part pricing scheme in the context of price discrimination?
A) A customer pays full price for the first 10 copies of a software program and then receives a 10 percent discount on each additional copy it buys. B) A firm, e.g., Sam's Club or Costco, charges a membership fee that is separate from the price paid for items purchased from the firm. C) A customer pays a $10 cover charge to enter a bar and then pays $5 for each beverage. D) An amusement park charges an admission fee and then charges a per unit price for each of the rides offered by the park.
Under the theory of purchasing power parity, an increase in the U.S. price level of 10% relative to the Japanese price level will result in
A) a 10% appreciation of the yen. B) a 10% appreciation of the dollar. C) an appreciation of the yen by an amount that depends upon what happens to the real exchange rate. D) an appreciation of the dollar by an amount that depends upon what happens to the real exchange rate.
Which of the following observations is not true?
A. Demand curve of the perfectly competitive firm is perfectly elastic. B. There is only one price for a product in a perfectly competitive market. C. A firm in a perfectly competitive market can sell as much as it wants at market price. D. Demand curve of the perfectly competitive industry is perfectly elastic.