An expansionary fiscal policy makes the exchange rate appreciate
a. True
b. False
Indicate whether the statement is true or false
True
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An investment is profitable as long as its internal rate of return is equal to the rate of interest
Indicate whether the statement is true or false
The demand for novels is _____________ than is the demand for science textbooks because __________________.
A. less price elastic; novels have more available substitutes. B. more price elastic; novels have less available substitutes. C. less price elastic; novels have less available substitutes. D. more price elastic; novels have more available substitutes.
Maggie is trying to convince her friend Hannah to spend the morning at the beach instead of studying economics. Maggie’s argument is that the beach is free so will not cost Hannah anything to go. Maggie even volunteers to drive. Maggie’s argument
a. is correct; it is free to go to the beach. b. is forgetting Hannah’s opportunity cost of not being able to study. c. assumes Hannah has to eat at home or the beach so it will not cost Hannah additional money. d. is forgetting sunk costs.
By opening up to foreign markets two things countries generally experience are:
A. increase in negative trade outcomes with that nation and finding customers who generally pay less for their products. B. access to a smaller array of new products and increase in negative trade outcomes with that nation. C. access to a smaller array of new products and saving money through access to cheaper goods. D. saving money through access to cheaper goods and finding new customers for their products.