Advocates of flexible exchange rates claim that under flexible exchange rates, the central bank of
A) an overheated economy could cool down activity by increasing the money supply without worrying that undesired reserve inflow would undermine its stabilization effort.
B) a cooled economy could cool down activity by contracting the money supply without worrying that undesired reserve inflow would undermine its stabilization effort.
C) an overheated economy could cool down activity by contracting the money supply without worrying that undesired reserve inflow would undermine its stabilization effort.
D) an overheated economy could cool down activity by contracting the money supply without worrying that undesired reserve outflow would undermine its stabilization effort.
E) an overheated economy could cool down activity by decreasing employment and increasing output without worrying that this would undermine its stabilization effort.
C
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If the baseball team can sell 6000 box-seat tickets when they set the price at $10 and 7000 box-seat tickets when they lower the price to $8, the marginal revenue per ticket between 6000 and 7000 tickets is
A) $60,000. B) $56,000. C) $9. D) $2. E) minus $4.
The U.S. Congress first instituted a minimum wage in
a. 1776. b. 1812. c. 1938. d. 1975.
A country has a population of 10 million people with 1 million unemployed, which is an unemployment rate of 20%. The number of people in the labour force is therefore:
(a) 10 million; (b) 5 million; (c) 1 million; (d) 2 million.
Technology is now being developed so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your car and automatically charges you for the use of the road. How would this affect bottlenecks and rush-hour congestion?
A. It would decrease bottlenecks and rush-hour congestion. B. It would decrease bottlenecks but increase rush-hour congestion. C. It would increase bottlenecks and rush-hour congestion. D. It would increase bottlenecks but decrease rush-hour congestion.