In an open economy with floating exchange rates, monetary policy is most effective at increasing real income if
A) capital mobility is high.
B) capital mobility is low.
C) capital mobility is perfect.
D) monetary policy is ineffective with floating exchange rates.
C
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If the U.S. government decides to distribute surplus cheese to food banks for the homeless, the government is addressing the question of
a. which goods and services should be produced with society's scarce resources b. what production methods should be used to produce goods and services c. how will output be allocated among the individuals in the society d. what prices will be charged for goods and services e. determining the optimal degree of specialization
A consumer spends all of her income on goods x and y. At her optimum,
a. marginal rate of substitution between good x and good y exceeds the ratio of the price of good x to the price of good y. b. her expenditure on good x is equal to her expenditure on good y. c. the slope of her budget constraint is equal to the slope of the highest indifference curve that she can reach while remaining within her budget. d. her valuation of the two goods exceeds the market’s valuation of the two goods.
In general in the U.S., persons classified as poor have money income that amounts to
A. less than half the median income. B. three quarters of the median income. C. the median income. D. half the median income.
OPEC (Organization of Petroleum Exporting Countries) is an example of a cartel in the output market for petroleum. Major League Baseball could be considered a cartel in the __________ market for baseball players
Fill in the blank(s) with correct word