Ceteris paribus, if African countries experience a drought and purchase food from the United States, the currencies of the African countries should
A. Depreciate, and the dollar should appreciate.
B. Appreciate, and the dollar should depreciate.
C. Depreciate, and the dollar should depreciate.
D. Appreciate, and the dollar should appreciate.
Answer: A
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Figure 11-4
Physicians have two types of patients: private patients who pay directly or with insurance, and Medicaid patients whose care is paid for by the state. Physicians must lower prices to attract more private patients, but they can add unlimited Medicaid patients at a constant price. The situation facing Dr. Casey is depicted in Figure 11-4. Units of medical service (say, number of patients × number of visits) are measured on the horizontal axis. How many units of medical service will Dr. Casey deliver to Medicaid patients?
A. OA B. AC C. OC D. OD
According to Keynes, what determines business spending?
a. Expectations of future sales and interest rates b. Expectations of future profits and costs c. Expectations of future profits and interest rates d. Expectations of future profits and future costs
The amount of goods and services the economy could produce if the labor force is fully employed is called
a. nominal GDP. b. real GDP. c. actual GDP. d. potential GDP.
Refer to Exhibit 6-2. The unemployment rate in year 1 is
a. 12 1/2 percent. b. 70 percent. c. 87 1/2 percent. d. 30 percent. e. 10 percent.