Refer to the table below. Under a flexible exchange rate system, what will be the euro rate of exchange for one U.S. dollar?
The table below shows the supply and demand schedules for the European euro.
A. 0.95 euro
B. 1.00 euros
C. 1.11 euros
D. 1.23 euros
C. 1.11 euros
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A person who has an absolute advantage in the production of all goods will
A) also have a comparative advantage in the production of all goods. B) not be able to gain from specialization and exchange. C) have a production possibilities frontier with a constant slope. D) have a comparative advantage in the production of some goods but not in the production of others.
When a tax is levied on sellers of tea,
a. the well-being of both sellers and buyers of tea is unaffected. b. sellers of tea are made worse off, and the well-being of buyers is unaffected. c. sellers of tea are made worse off, and buyers of tea are made better off. d. both sellers and buyers of tea are made worse off.
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
If Ebenezer Scrooge spends rather than saves his vast wealth, he will
A) promote economic growth because he is increasing the amount of funds available for investment. B) slow economic growth because he is reducing the amount of funds available for investment. C) slow economic growth because he is increasing the amount of funds available for investment. D) promote economic growth because he is decreasing the amount of funds available for investment.