The following diagram shows the rate of inflation each year during a five-year span. Use this diagram to answer the next question.
How fast did prices rise in Year 2?
A. -2%
B. 6%
C. 4%
D. 2%
Answer: C
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Activities that encourage faster growth are
A) high levels of consumption and low levels of savings. B) high levels of saving and investment in human capital. C) imposing trade barriers to limit international trade and thereby protect national industries. D) limiting property rights so that everyone can use any invention. E) taxes on saving that serve to encourage more spending and less saving.
Which of the following would increase the GDP of the United States?
a. A resident of California buys a case of wine from a winery in France.
b. A resident of Germany buys a software program from a company in Washington.
c. A resident of Florida spends $3,000 on a vacation in Mexico.
d. A Japanese investor purchases 100 shares of a computer company located in Illinois.
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$10,000$12,000911,00017,000813,00022,000716,00026,000620,00033,000
Table 9.8 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If Firm A contemplates selling one permit to Firm B, what is Firm A's willingness to accept?
A. $2,000 B. $3,000 C. $4,000 D. $5,000
How does an increase in a country's exchange rate affect its balance of trade?
A) An increase in the exchange rate raises imports, reduces exports, and reduces the balance of trade. B) An increase in the exchange rate reduces imports, raises exports, and reduces the balance of trade. C) An increase in the exchange rate reduces imports, raises exports, and increases the balance of trade. D) An increase in the exchange rate raises imports, reduces exports, and increases the balance of trade.