The price of domestic goods in terms of foreign goods is referred to as the
A) nominal exchange rate.
B) real exchange rate.
C) relative inflation rate.
D) purchasing power parity rate.
B
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The supply curve does not:
A. represents producers' willingness and ability to sell. B. show the minimum price producers will accept for any given quantity. C. visually display the supply schedule. D. illustrate how consumers want to purchase goods and services.
Which of the following does not describe a pure market economy? a. The choices of buyers and sellers determine the market prices of goods and services. b. Prices serve as signals to buyers and sellers
c. Prices and outputs of most goods and services are stable over time. d. Owners of resources in greater demand by others tend to have higher incomes.
Suppose you're in the trucking business and you purchase a $100,000 truck with a one year loan for the full amount. Ignoring interest payments, what is your fixed cost per month?
a. $10,000 b. $20,000 c. $25,000 d. $12,000 e. $8,333
What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up, the price of jelly fell, fewer firms decided to produce peanut butter, and health officials announced that eating peanut butter was good for you?
a. Price will fall, and the effect on quantity is ambiguous. b. Price will rise, and the effect on quantity is ambiguous. c. Quantity will fall, and the effect on price is ambiguous. d. Quantity will rise, and the effect on price is ambiguous.