What would the situation be at $1.25 = 1 euro?
a. The value of $1 would be 1.25 euros.
b. The quantity of euros demanded would be greater than the quantity supplied.
c. The foreign exchange market would be in equilibrium.
d. The quantity of euros supplied would be greater than the quantity demanded.
b. The quantity of euros demanded would be greater than the quantity supplied.
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An import quota specifies
A) the amount of funds that can be paid for any imported good. B) the amount of taxes that must be paid on any imported good. C) the maximum amount of an item that may be imported during a specified period. D) the minimum amount of an item that may be imported during a specified period.
Mark and Charles are roommates at college. Each has written a 25-page term paper for the same English class. They are equally poor typists. Charles types his own paper and gets paid by Mark to type his, too. On the basis of the information given, which one of the following must be true?
a. Mark is wealthier than Charles. b. Mark needs more time to study than Charles. c. Charles hates typing. d. Mark and Charles have different utilities for typing but place the same value on time. e. Mark's opportunity cost of typing is higher than Charles's.
Which of the following will most likely increase the natural rate of unemployment?
a. a decrease in the minimum wage b. an increase in unemployment benefits c. an increase in the number of people who stop looking for a job d. an increase in the proportion of prime-age workers as a share of the labor force
Higher rates of substitution are indicated by _______ values of the marginal rate of substitution.
A. small negative B. large negative C. small positive D. large positive