If the interest rate on a bank deposit in the United States is 3 percent while a similar deposit earns 6 percent in Britain, then we could expect that deposits would flow to
A) Britain if the pound is expected to depreciate more than 3 percent.
B) the United States regardless of exchange rate expectations.
C) the United States if the dollar is expected to appreciate less than 3 percent.
D) Britain if the pound is expected to depreciate less than 3 percent.
E) Britain regardless of exchange rate expectations.
D
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The figure above shows Roger's production possibilities frontier. Point a is an ________ point and at that point production is ________
A) attainable; efficient B) attainable; inefficient C) unattainable; inefficient D) unattainable; efficient
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100,000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, how much will each type B individual contribute in total? a. 1875 b. 1500 c. 875 d. 625
In the figure above, the wage rate is $600 and total fixed cost is $15,000. When there are 40 workers, what is average variable cost?
A. $12.00 B. $5.00 C. $6.00 D. $4.10 E. $0.23
The CPI equals 1.00 in year one and 1.05 in year two. If the nominal wage is $15 in year one and a contract calls for the wage to be indexed to the CPI, what will be the nominal wage in year two?
A. $15.00 B. $15.75 C. $14.29 D. $16.05