Purchasing-power parity plays a major role in long-run exchange rate movements.
Answer the following statement true (T) or false (F)
True
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Which of the following are capital goods?
a. land and raw materials b. all manufactured goods c. automobiles and houses d. factories and machinery e. all goods consumed by both firms and households
The inner loop of the circular-flow diagram represents the flows of inputs and outputs. Which of the following does not appear on the inner loop?
a. wages b. land c. capital d. goods and services sold
Figure 9.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. If buyers believe that all of the used refrigerators in the market are lemons (low quality), what number of used refrigerators sold will actually be lemons (low quality)?
A. 50 B. 125 C. 175 D. 250
For a perfectly competitive industry, a decline in technology will cause
A. the industry short-run supply curve to shift to the right. B. a movement up the short-run industry supply curve. C. a movement down the short-run industry supply curve. D. the industry short-run supply curve to shift to the left.