Flexible, or floating, exchange rate is determined by the:
A. World Bank.
B. forces of supply and demand.
C. price of gold.
D. Federal Reserve.
Answer: B
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Use the following graph, where Sd and Dd are the domestic supply and demand curves for a product, to answer the next question.
The world price of the product is $6. If an import quota of 40 units is imposed on the product, then the equilibrium price would be_____ and the quantity consumed would be ________ units.
A. $6; 80 B. $12; 50 C. $10; 60 D. $8; 70
Because of the productivity slowdown in the United States from the mid-1970s through the mid-1990s
A) the standard of living did not change. B) the standard of living increased in the United States. C) real GDP per capita grew more rapidly. D) real GDP per capita grew more slowly.
An increase in the interest rate __________ purchases of consumer __________
A) increases; durables B) increases; nondurables C) reduces; durables D) reduces; nondurables
If the food stamp program in the United States moved from coupons redeemable for food to cash payments,
A) everyone would buy less food and more of other goods. B) everyone would buy more food and less of other goods. C) some people might buy less food and obtain a higher level of utility. D) some people might buy less food and obtain a lower level of utility.