China began pegging its currency, the yuan, to the dollar in 1994
Because the yuan has been ________ at the pegged exchange rate, the Chinese government ________ its reserves of dollars as the government purchased more ________ to maintain the pegged exchange rate.
A) undervalued; decreased; yuan B) overvalued; increased; yuan
C) undervalued; increased; dollars D) overvalued; decreased; yuan
C
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What types of government intervention did the World Bank determine was common in the East Asian economies?
What will be an ideal response?
Jacko's rock band is putting out a new CD with its music label. The contract between the band and the label specifies that the band receive 25% of the gross revenues plus another $10,000 up front
The record label projects the demand for the album p = 50 - 0.003Q where p is the price per CD (in $) and Q is the number of CDs demanded. The cost (not including the band's salary) of producing the CD is constant at $5 per disc. a. Compute the joint-profit-maximizing price and quantity. b. Compute the profit maximizing price that the label will wish to set. c. What price will Jacko want his band's CD sold for? (Assume he only cares about money earned from the CDs.)
In an oligopoly, when the quantity effect outweighs the price effect:
A. keeping output constant and raising price will increase the firm's profits. B. an increase in output may increase the firm's profits. C. a decrease in output may increase the firm's profits. D. keeping output constant and lowering price will increase the firm's profits.
For the firm, the major goal of profit sharing plans is to:
A. force workers to incur some of the business risk. B. overcome the monopsony problem of having to pay higher wages to attract additional workers. C. overcome the principal-agent problem by better aligning the workers' interests with those of the firm. D. reduce total compensation payments.