Based on the theory of purchasing power parity, in the long run, currencies of countries with significant inflation will tend to:
A. be flexible.
B. appreciate.
C. have nominal exchange rates.
D. depreciate.
Answer: D
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A society that is inside its production possibilities frontier is efficient.
Answer the following statement true (T) or false (F)
The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. A $1 per unit tariff has the same effect on producer and consumer surplus as a quota of
A) 10 units. B) 20 units. C) 30 units. D) 40 units.
Will the imposing of a minimum wage lead to a larger increase in the unemployment rate if the labor supply curve is relatively price elastic or relatively price inelastic?
The cross elasticity between two substitutes is always positive
Indicate whether the statement is true or false