An activity that makes some people better off and nobody worse off is a
A. government transfer program such as Social Security.
B. reduction in interest rates.
C. voluntary exchange.
D. price floor that increases income to suppliers.
Answer: C
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Because the United States is highly integrated with the international capital market, international capital flows tend to
A. counteract the negative effect on aggregate demand of lower interest rates. B. counteract the positive effect on aggregate demand of higher interest rates. C. strengthen the negative effects on aggregate demand of higher interest rates. D. strengthen the negative effects on aggregate demand of lower interest rates.
Porter's five forces portray
a. A zero-sum game b. A game where your profitability comes at the expense of someone else's c. The ability of market participants to create a larger total pie d. Only A&B
Vouchers allow students to
A. get free lunches at public schools. B. go to public schools at reduced rates. C. receive discounts on school supplies like pens and paper. D. all of these. E. none of these answer options are correct.
Completely flexible exchange rates are fairly self-explanatory, and hard pegs include dollarization and currency boards. These seem to be the extremes. Assuming free flow of capital, why do you think soft pegs are never used?
What will be an ideal response?