The demand for foreign currencies is known as a derived demand because the demand for a foreign currency ______.
a. derives directly from the demand for foreign goods and services or for foreign investment
b. is derived from the domestic tariffs on foreign imports of goods and services
c. derives directly from the unilateral transfers recorded for a nation
d. is derived from the statistical discrepancy amount
a. derives directly from the demand for foreign goods and services or for foreign investment
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According to the text, the Fed and other policy makers are concerned about:
A. inflation rates that are too high only. B. inflation rates that are either too high or too low compared to its set target. C. inflations rates that are too low only. D. annual inflations rates that exceed 10%.
When economists say that the demand for a product has decreased, they mean that
A. consumers are now willing and able to buy less of this product at each possible price. B. the demand curve has shifted to the right. C. the product has become particularly scarce for some reason. D. the product has become more expensive and thus consumers are buying less of it.
When the price of a good rises from $5 to $7 a unit, the quantity supplied increases from 110 to 130 units a day. The price elasticity of supply is _______. The supply of the good is _______
A. 60; elastic B. 10; elastic C. 0.5; inelastic D. 2; inelastic
Scarcity is a result of an unfair distribution of income
a. True b. False Indicate whether the statement is true or false