Recall the Application about the behavior of prices in retail catalogs to answer the following question(s). This Application examines the concept of:
A. the wealth effect.
B. sticky prices.
C. consumer spending habits.
D. stagflation.
Answer: B
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The South's economy was based on production of
A. iron, steel and textiles. B. corn, wheat and soybeans. C. tobacco, cotton and rice. D. iron, wheat and cotton.
Oligopoly is a market structure in which
a. non price competition is seldom used. b. all producers are selling identical or similar products. c. there are many sellers with differentiated products. d. administered pricing is rarely practiced.
The demand for euros in the foreign exchange market equals 8,000 - 2,000 e and the supply of euros in the foreign exchange market equals 3,000 + 3,000 e, where e is the nominal exchange rate expressed in U.S. dollars per euro. If the euro is fixed at 1.25 U.S. dollars per euro, then the euro is ________ and Euroland has a balance-of-payments ________.
A. undervalued; surplus of 1,250 euros B. overvalued; surplus of 1,250 euros C. overvalued; deficit of 1,250 euros D. undervalued; deficit of 1,250 euros
The economic system that is generally considered to be the most efficient at answering the What to produce and the How to produce questions is the:
A. market economy. B. command economy C. soviet economy. D. traditional economy.