If prices rise and income stays the same, what is the effect on demand?
(A) More is bought of some goods and less of others.
(B) More goods are bought.
(C) Demand stays the same.
(D) Fewer goods are bought.
Ans: (D) Fewer goods are bought.
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In the open-economy macroeconomic model, other things the same, which of the following both make the exchange rate fall?
a. U.S. investment demand falls and foreign demand for U.S. goods falls b. U.S. investment demand falls and foreign demand for U.S. goods rises c. U.S. investment demand rises and foreign demand for U.S. goods falls d. U.S. investment demand rises and foreign demand for U.S. goods rises
Suppose a health insurance company notes that almost all of its customers are at a high risk of illness or injury. This is an example of:
A. public information. B. perfect information. C. a thick market. D. an adverse selection problem.
Which of the following groups does not belong with the others?
A. Permanent residents B. Green-card recipients C. Temporary immigrants D. Overstaying aliens
Finding two parties who both have something the other party wishes to trade for is called a
A. unit of account. B. double coincidence of wants. C. medium of exchange. D. store of value.