Suppose a country, whose production and consumption of coffee is large relative to the world market, has just entered the global market. If the country is a net exporter of coffee, we would expect the world:
A. supply curve to shift more to the left than the world demand curve as a result.
B. demand curve to shift more to the right than the world supply curve as a result.
C. demand curve to shift more to the left than the world supply curve as a result.
D. supply curve to shift more to the right than the world demand curve as a result.
Answer: D
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Recall from Chapter 5: Other things constant, when households lower their time preferences, and demonstrate a willingness to postpone some present consumption for future consumption,
A) their savings increase. B) their savings decrease. C) the budget deficit increases. D) the budget deficit decreases.
Jason needs help getting ready for the next test in his economics course and would like to hire Maria, an economics tutor to help him
Jason is willing to pay $30 for the first hour of tutoring, $25 for the second, $20 for the third, $15 for the fourth, and $10 for the fifth. The equilibrium price for tutoring is $15 per hour. For how many hours of tutoring will Jason hire Maria? Why this amount of hours? What is Jason's consumer surplus, if any, from the tutoring? What is Maria's consumer surplus from the tutoring?
The domestic currency value of the return on a foreign investment when the foreign currency proceeds are sold in the forward market, is defined to be the
A) covered return. B) uncovered return. C) forward return. D) Both B and C.
The double taxation of saving creates a bias towards _____
a. investment b. consumption c. luxury spending d. the future