All of the following are examples of a constant-elasticity demand curve except a(n)
a. perfectly elastic demand curve
b. linear demand curve with a slope of -4
c. perfectly inelastic demand curve
d. unit-elastic demand curve
e. vertical demand curve
B
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A friend claims that the United States is a net international debtor. The best way of testing this claim is to see whether
A) U.S. foreign liabilities exceeded U.S. foreign income. B) U.S. receipts from foreign assets exceeded U.S. payments to foreign owners of U.S. assets. C) U.S. official reserve assets were positive or negative. D) the United States ran a balance of payments surplus or deficit last year.
As the price of a good increases:
a. that good will yield less satisfaction per dollar than before. b. consumers will have more real income to spend on other goods. c. the quantity demanded of that good will also increase. d. the utility-maximizing quantity of that good willl not change. e. consumers will buy the good and substitute away from other goods.
For this question, assume that the domestic interest rate is 8% and that the foreign interest rate is 6%. And finally, assume that the domestic currency is expected to depreciate by 3% during the coming year. Given this information, we know that
A) individuals will only hold domestic bonds. B) individuals will only hold foreign bonds. C) individuals will be indifferent about holding domestic or foreign bonds. D) the interest parity condition holds.
Your opportunity cost of taking this course is the:
A. cost of the activity you would have chosen if you had not taken the course. B. tuition you paid for the course. C. net benefit of taking this course. D. net benefit of the activity you would have chosen if you had not taken the course.