If the price of coffee is $1 per pound, how much would it have to change to reach its equilibrium price?
a. increase $1
b. increase $2
c. increase $3
d. increase $4
b. increase $2
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The equilibrium exchange rate is 0.70 euros per dollar. At this exchange rate, the quantity demanded equals the quantity supplied and is $1.3 trillion a day. If the exchange rate is now 0.60 euros per dollar, then
A) there is a shortage of dollars and the exchange rate rises. B) there is a shortage of dollars and the exchange rate falls. C) there is a surplus of dollars and the exchange rate rises. D) there is a surplus of dollars and the exchange rate falls. E) there is no change.
The primary function of the World Bank is to:
a. lend money to the World Trade Organization. b. provide loans to countries experiencing huge budget deficit. c. finance economic development in poor countries. d. assist countries experiencing balance of payments deficits. e. finance the fiscal stabilization program of the U.S. government.
The basic liberal solution to welfare dependency is
A. government jobs. B. forcing the poor off welfare. C. ending immigration. D. identical to the conservative solution.
When people are in financial difficulty an advisor will usually recommend establishing a budget for spending. One reason is that a budget will act to discipline behavior if people psychologically are subject to
A. mental accounts. B. bounded rationality. C. segregated gains. D. the halo effect.