If, under a fixed exchange rate system, the dollar price of a Mexican peso is above its equilibrium level, then the
A) dollar is undervalued.
B) peso is undervalued.
C) dollar has appreciated.
D) peso has depreciated.
A
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Suppose the government imposes a price ceiling on gasoline that is less than the equilibrium price. As a result
A) the price of gasoline rises to the equilibrium price. B) there is incentive for buyers to undertake search activity. C) the supply of gasoline will increase and the supply curve will shift rightward. D) the demand for gasoline will decrease and the demand curve will shift leftward.
This graph depicts a tax being imposed, causing demand to shift from D1 to D2. The amount of tax revenue being generated by the tax imposed in the graph shown is:
A. area P2CAP4.
B. area P1DBP3.
C. area ABC.
D. area ABCD.
Which of the following observations is true of the federal budget between 1960 and 2010?
a. The federal budget was in deficit in the early 1960s. b. Between 1960 and 1970 the federal budget deficit reflected a sharp increase. c. The federal budget was in surplus between 1970 and 1980. d. The federal budget deficit was the highest in the late 1990s. e. The federal budget deficit was lower than 600 billion dollars in 2010.
Other things equal, increased emphasis on providing the best possible medical care for all, regardless of income, will:
A. increase the demand for health care. B. increase the supply of health care. C. have no effect. D. decrease the demand for health care.