An exchange rate that varies according to supply and demand for the currency in the foreign exchange market is called a ________ exchange rate.
A. flexible
B. nominal
C. fixed
D. real
Answer: A
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Suppose the market clearing rate for apartments in Yazoo City, Mississippi is $400 per month, but a rent control is set at $600 per month. Which of the following would tend to occur in the community?
A) A shortage of apartments B) An increase in the quantity demanded for apartments C) Both of the above. D) Neither of the above.
Suppose a friend gives you two pieces of gum, and you decide to have one piece now and save the other for tomorrow. You do this because:
a. the total utility you get from the two pieces of gum will be higher tomorrow. b. the marginal utility you get from the second piece will be higher tomorrow. c. the marginal utility you get from the second piece will be higher today. d. the marginal utility you get from the first piece will be less today. e. the total utility you get from the two pieces will be less tomorrow.
The location of the supply curve of a product depends on:
A. the technology used to produce it. B. the number of sellers in the market. C. the prices of resources used in its production. D. all of these.
What theory argues that free trade is beneficial, but that differences in factor endowments, not productivity, determine the pattern of international trade?
What will be an ideal response?