The buying and selling of foreign currency is known as:
a) foreign exchange.
b) foreign trade.
c) the balance of payments.
d) the capital account.
Ans: a) foreign exchange.
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A binding price ceiling that could be set in the market in the graph shown would be:
A. $15.
B. $11.
C. $8.
D. $30.
Allen tutors in his spare time for extra income. Buyers of his service are willing to pay $40 per hour for as many hours Allen is willing to tutor. On a particular day, he is willing to tutor the first hour for $10, the second hour for $18, the third hour for $28, and the fourth hour for $40 . Assume Allen is rational in deciding how many hours to tutor. His producer surplus is
a. $40. b. $64. c. $12. d. $56.
In recent years, people have benefited from greater amounts of leisure time. This trend
What will be an ideal response?
Suppose there is a fiscal expansion in the current period. This fiscal expansion will tend to cause a smaller increase in current output when
A) an increase in current output causes an increase in expected future output. B) an increase in the current interest rate causes expectations of expansionary monetary policy in the future. C) an increase in the current interest rate causes an increase in expected future interest rates. D) both A and B E) all of the above