Which of the following generates a demand for dollars in the foreign exchange market?
A. Travel by foreign visitors in the United States.
B. Transfers of money by foreign workers in the United States to relatives abroad.
C. Foreign aid given by the United States.
D. U.S. military installations abroad.
Answer: A
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The CPI may overstate inflation for all the following reasons except
A) problems measuring changes in the quality of goods. B) substitution by consumers towards cheaper goods. C) problems measuring the quality of services. D) changes in Social Security benefits.
Which statement is true?
A. The Social Security tax is progressive. B. An excise tax on cigarettes is regressive. C. A sales tax is a direct tax. D. None of these statements are true.
Refer to the diagram. An industrial (inclusive) union could increase employment in this labor market:
A. by negotiating any wage rate between W 1 and W 4 .
B. by negotiating a wage rate greater than W 4 .
C. only if it accepted a wage rate below W 1 .
D. only if it could shift the labor demand curve rightward.
A line that rises from left to right has a positive slope
a. True b. False Indicate whether the statement is true or false