It is appropriate to use the supply-and-demand model if, in a market,
A) everyone is a price taker with full information about the price and quality of the good.
B) firms sell identical products.
C) costs of trading are low.
D) All of the above.
D
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Which of the following is NOT included in measured U.S. GDP?
A) the value of the pizzas produced at Pizza Hut in Kansas City B) the value of leisure time C) the value of the goods produced at a French owned plant in Atlanta, Georgia D) the value of the services produced by a lawyer in Tampa, Florida E) the value of a plane produced by Boeing in Washington and sold to Air France
A tax cut initially
A) increases consumption expenditure by an amount greater than the tax cut. B) increases consumption expenditure by an amount equal to the tax cut. C) increases consumption expenditure by an amount that is less than the value of the tax cut. D) has no effect on consumption expenditure. E) reduces consumption expenditure by an amount that is less than the value of the tax cut.
If there is always a three-for-one tradeoff between goods X and Y, then the PPF between X and Y is
A) a downward-sloping curve that is bowed outward. B) a downward-sloping curve that is bowed inward. C) a downward-sloping straight line. D) an upward-sloping straight line.
Starting with an exchange rate of $1 = ¥110, and a price tag of ¥30,000 for a Japanese good, what happens to the dollar price of the good if the yen appreciates by 6 percent?
A) the dollar price of the good rises from $272.73 to $289.09 B) the dollar price of the good falls from $272.73 to $256.37 C) the dollar price of the good rises from $330,000 to $349,800 D) the dollar price of the good falls from $330,000 to $310,200 E) ?the dollar price of the good rises falls from $2,700 to $2,560