Any action that gives rise to a demand for foreign currency is a
A) deficit item on the current, financial, or capital account.
B) deficit item on the current account and a surplus item on the financial and capital accounts.
C) surplus item on the current account and a deficit item on the capital and financial accounts.
D) surplus item on the current, financial, or capital account.
A
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How does marginal cost change as output increases (a) initially and (b) eventually?
What will be an ideal response?
Contractionary monetary policy on the part of the Fed results in
A) an increase in the money supply, a decrease in interest rates, and an increase in GDP. B) a decrease in the money supply, an increase in interest rates, and a decrease in GDP. C) a decrease in the money supply, a decrease in interest rates, and a decrease in GDP. D) an increase in the money supply, an increase in interest rates, and an increase in GDP.
Suppose the price of a bag of tortilla chips decreases from $3.00 to $2.50 and, as a result, the quantity of tortilla chips demanded increases from 200 bags to 300 bags. Using the midpoint method, the price elasticity of demand for tortilla chips in the given price range is
a. 0.33. b. 0.45. c. 2.20. d. 3.00.
Regulation is appropriate if
A. It improves market outcomes regardless of costs. B. Government failure exists. C. An economic profit is being earned. D. Market failure exists and the benefits of regulation exceed the costs.