If the interest rate is 8 percent, $54 next year is worth __________ today
a. $62
b. $50.68
c. $50
d. $62
e. $4.32
C
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In an open economy, why is the supply curve for dollars in the foreign-currency exchange market vertical?
A. Net capital outflow is determined by real GDP, not the real exchange rate. B. Net capital outflow is extremely sensitive to small changes in the real exchange rate. C. Net capital outflow is determined by the real interest rate, not the real exchange rate. D. Net capital outflow equals net exports.
Labor demand curves always slope down.
Answer the following statement true (T) or false (F)
Suppose coffee is sold in a monopolistically competitive market, where coffee is differentiated by coffee shop location. As firms enter in the long run and the price of coffee falls:
A. the market quantity of coffee demanded will increase, but the quantity of coffee supplied by any individual coffee shop declines. B. the market quantity of coffee demanded will decrease as does the quantity supplied from any individual coffee shop. C. the average costs of production decline. D. the profits of individual coffee shops increase.
Refer to the information provided in Figure 6.13 below to answer the question(s) that follow.
Figure 6.13Refer to Figure 6.13. Assume Megan has two products available, pizza and hamburgers. Megan is always willing to trade an equal number of pizzas for hamburgers regardless of how many pizzas and hamburgers she has. The curve in Panel ________ represents her indifference curve.
A. A B. B C. C D. D