Under a system of fixed exchange rates, excess demand by Germans for the Swiss franc represents a potential
A. German balance-of-payments deficit with Switzerland.
B. German balance-of-payments surplus with Switzerland.
C. German trade surplus with Switzerland.
D. Swiss trade surplus with Germany.
Answer: A
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A textile manufacturing unit faces low productivity due to shirking by workers. Which of the following is a possible solution to increase productivity and retain employees?
A) The provision of a lower real wage B) The provision of a lower nominal wage C) The provision of minimum wages D) The provision of efficiency wages
What is the distinction between expected wealth and expected utility?
What will be an ideal response?
The national debt is unlikely to cause national bankruptcy because the federal government can:
a. raise taxes. b. print money. c. refinance its debt. d. all of these.
Which of the following is true of the law of diminishing marginal utility?
a. The additional utility that a person receives from consuming the first unit of a good will be more than the additional utility received from consuming the fifth unit of that same good. b. The additional utility that a person receives from consuming the first unit of a good will be less than the additional utility received from consuming the fifth unit of that same good. c. The additional utility that a person receives after consuming the first unit of a good will be equal to zero. d. The additional utility that a person receives from consuming the first unit of a good will be equal to the additional utility received from consuming the fifth unit of that same good.