Your sister always brags about how savvy of a grocery shopper she is. She believes that she saves lots of money by paying with coupons and making her grocery purchases at multiple stores to get the lowest prices on all goods. She may overestimate her savings because:
A. she does not count the cost of the gas used driving extra miles to multiple grocery stores.
B. she does not count the value of the time it took to sort and clip coupons as a cost.
C. she does not count the value of the extra time it takes to stand in multiple lines at multiple stores and use multiple coupons compared to a trip to one store with no coupons.
D. All of these.
Answer: D
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Which of the following will increase the demand for U.S. products in the international market?
a. An increase in the average price level in the U.S. b. A depreciation of foreign currency c. A depreciation of the U.S. dollar d. A tariff imposed by the U.S. on imported goods e. A rise in the domestic demand for goods and services
If a nation's real risk-free interest rate fell relative to foreign nations, it would cause the value of the domestic currency to _______ and net exports to ________ (fill in the missing blanks)
a. Fall; rise b. Fall, rise c. Remain unchanged; rise d. Rise; fall e. Remain unchanged; fall
For a monopolist, when the price effect is greater than the output effect, marginal revenue is
a. positive. b. negative. c. zero. d. maximized.
Government spending is an injection in the sense that it
A. increases the amount of total spending. B. increases the size of the federal deficit. C. decreases the amount of household saving. D. decreases the amount of taxes paid.