If every household in Trinidad received an international grant of $50,000 to spend on household appliances, its
a. aggregate supply curve would shift to the right
b. aggregate supply curve would shift to the left
c. price level would rise causing a movement up along its aggregate demand curve
d. aggregate demand curve would shift to the left
e. aggregate demand curve would shift to the right
E
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For third-party certification to overcome the problem of ________, consumers must believe that it is ________.
A) adverse selection; unbiased B) adverse selection; biased C) moral hazard; unbiased D) moral hazard; biased
If a good has unitary price elasticity of demand, then the absolute value of the percentage change in
A. quantity exactly equals one. B. price exactly equals one. C. the quantity demanded equals the absolute value of the corresponding percentage change in price. D. quantity demanded and the absolute value of the corresponding percentage change in price both equal one-half and total one.
In order to maintain an effective fixed exchange rate that differs from the market rate, the government must have
a. arbitrage capability b. a surplus of merchandise exports c. the ability to persuade other governments to control their exports d. sufficient foreign exchange reserves e. the ability to float high interest rates
A 2.9 percent payroll tax (1.45 percent levied on both the employee and the employer) imposed on current workers is used to finance the
a. Medicaid program that provides healthcare for the poor. b. hospitalization costs of Medicare beneficiaries. c. cost of physician services supplied to the elderly. d. healthcare costs of both the elderly and the poor.