An increase in the value of a currency relative to other currencies is called a(n):
A. evaluation.
B. overvaluation.
C. appreciation.
D. devaluation.
Answer: C
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If the central bank can act as a lender of last resort during a banking panic, banks can
A) call in their loans to their customers and eventually restore the public's faith in the banking system. B) satisfy customer withdrawal needs and eventually restore the public's faith in the banking system. C) borrow more and more money from the central bank, and this will lower its reserves and decrease the public's faith in the banking system. D) encourage the public to borrow directly from the central bank, and this will worsen the banking panic.
The vertical distance between the average total cost curve and the average variable cost curve at any given output level equals average fixed cost at that particular output level
a. True b. False Indicate whether the statement is true or false
Structural unemployment results when:
A. the minimum wage is set to increase in the near future. B. there is generous unemployment insurance. C. workers are temporarily laid off due to weather conditions. D. the real wage is above its market-clearing level.
A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade):$20 per bottleDomestic production (free trade):500,000 bottlesDomestic production (after tariff):600,000 bottlesDomestic consumption (free trade):750,000 bottlesDomestic consumption (after tariff):650,000 bottles The imposition of the tariff on wine will cause the surplus of the domestic producers to ________ by about
A. rise; $2.75 million. B. fall; $2.5 million. C. rise; $1 million. D. rise; $500,000.