Which of the following is TRUE about exchange rates?
A) They should not be volatile because they will determine the economic climate.
B) They are generally more volatile than stock prices.
C) They are more volatile than several underlying factors that move them such as money supplies and fiscal variables.
D) They should be volatile because to correct price signals they adjust quickly in response to economic news, but they are generally less volatile than stock prices.
E) They never overreact to economic news.
D
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A graph shows the average SAT scores for males and females in 2012. The kind of graph used to show these data would be a
A) scatter diagram. B) time-series graph. C) cross-section graph. D) time-stationary graph. E) trend figure.
Over time, nations tend to converge to
A) the same balanced growth path and same income per capita. B) the same balanced growth path but varying income per capita. C) different balanced growth paths but the same income per capita. D) different balanced growth paths because of varying income per capita.
The economic inefficiency of a monopolist can be measured by the
a. deadweight loss. b. value of the unrealized trades that could be made if the monopolist produced the socially-efficient output. c. area above marginal cost but beneath demand from the monopoly output to the socially-efficient output. d. All of the above are correct.
Social Security payments were not indexed to adjust for inflation until:
A. 1940. B. 1975. C. 1990. D. 1968.