If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries.
B. completely ineffective on the exchange rate.
C. likely to have a much greater impact on the exchange rate than in developed countries.
D. likely to have roughly the same impact on the exchange rate as in developed countries.
Answer: C
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Suppose a new way of producing fireworks is developed, using different chemicals that do not release as many hazardous heavy metals into the environment. Which type of innovation is this?
A. The creation of a new good or service B. A productivity-enhancing innovation C. A quality-of-life innovation D. Basic research
Corn is produced in a perfectly competitive market. The demand for ethanol decreases. This will cause the individual corn farmer?s marginal revenue to ________ and their profit-maximizing level of output to ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease
If the graph shown represents Stella's budget constraint, and hairbands cost $4, what must Stella's income to spend on these two items be?
A. $48 B. $16 C. $32 D. Cannot answer this question without more information.
Economists are skeptical about the degree to which predatory pricing is used because
a. "price wars" are rarely observed in actual markets. b. when used as a warning to potential rivals, predation has minimal value. c. buy-outs are less costly than predation and have no offsetting disadvantages. d. firms can easily counter predation by "laying low" or borrowing funds.