Why is China's currency undervalued?
A) The Asian miracle is over.
B) They do not trade with the U.S.
C) They do not allow their currency to appreciate despite large external surpluses.
D) They are stockpiling international reserves to protect against the next East Asian crisis.
E) They are not aware of the real value of their currency.
C
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Lizzie's budget line is shown in the figure above. Lizzie's real income in terms of cookies is ________ cookies
A) 5 B) 10 C) 15 D) 20
Refer to Table 8-29. Based on the table above, what is national income for this economy?
A) $4,700 billion B) $4,000 billion C) $3,150 billion D) $2,450 billion
When an individual is frictionally unemployed, the unemployment arises from
A) a short-term elimination of jobs because of a slowdown in business activity. B) imperfect labor market information which requires individuals to search for appropriate employment. C) the permanent elimination of jobs because of a change in the structure of the economy. D) a reduction in the overall demand for labor's skills.
Consider the hypothetical supply and demand of Kidneys.
Initially, kidneys are exchanged by donations only (price=0). If the government decides to legalize kidney sales and the market reaches equilibrium, then:
A. total surplus increases.
B. consumer surplus remains the same.
C. producer surplus remains the same.
D. a shortage of kidneys will arise.