When a currency is undervalued, international reserves ________ and the country has a balance-of-payments ________.
A. decrease; surplus
B. increase; deficit
C. decrease; deficit
D. increase; surplus
Answer: D
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A decrease in the price of eggs from $1.50 to $1.30 per dozen resulted in an increase in egg purchases in two cities
In Philadelphia, daily egg purchases increased from 6000 to 8000 dozens; in nearby Dover, Delaware, daily egg purchases increased from 300 to 400 dozens. The price elasticity of demand is therefore A) lower in the smaller city as would be expected. B) greater in the smaller city as would be expected. C) certainly affected by population differences in different markets. D) the same in Philadelphia as in Dover.
According to the monetarists, the ratio of nominal GDP to the money stock should be
a. highly unstable in short run and in long run. b. unstable only during recession. c. unstable only in the long run. d. quite stable in the short run and the long run. e. unstable only if the LM curve shifts.
Refer to the information provided in Table 2.2 below to answer the following question(s).Table 2.2?MollyPeteAvatar Design68Tattoo Design32Refer to Table 2.2. For Molly, the opportunity cost of designing one tattoo is
A. 1/2 of an avatar design. B. 1 avatar design. C. 2 avatar designs. D. 3 avatar designs.
Computer software is an example of a good that is
a. both nonexcludable and nonrivalrous. b. nonexcludable, but not nonrivalrous. c. nonrivalrous, but not nonexcludable. d. a pure private good.