A floating exchange rate is where the rate is
a. determined by the domestic market for money.
b. set by the government as a hard peg
c. set by the government as a soft peg.
d. determined in the foreign exchange market.
d. determined in the foreign exchange market.
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An increase in wealth would shift the:
A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward.
Between 1917 and 1982, the US ran a financial account deficit
a. True b. False
Economic theory suggests that discriminating employers will be driven from the marketplace when the output market is competitive. Why?
A. The government mandates that the employer not act on his or her desire to discriminate. B. A competitive output market requires all workers to be paid the same wage. C. Workers will refuse to work for a discriminating employer. D. Customers will refuse to purchase from a discriminating employer. E. Discrimination imposes an additional cost on the employer, and high-cost firms are eventually driven out of a competitive output market.
Which of the following is true of consumer surplus?
A. It is used to measure the impact of a change in price on the economic well-being of the producers. B. It is the net gain in economic well-being associated with producing and selling the equilibrium quantity of a good. C. It is the difference between the value that one places on a good and the price paid for the good. D. It is graphically represented as the area under the equilibrium price and above the supply curve of a good.