When everyone correctly anticipates that the Fed will buy government securities, then they know that prices will increase. Which of the following adjustments is not likely to occur?
A) Workers will negotiate higher wages.
B) Suppliers of resources will demand higher prices for their resources.
C) Producers will prevent the price level from increasing and hurting their sales.
D) Producers will raise prices.
C
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Name and briefly describe the three balance of payments accounts
What will be an ideal response?
Foreign investment in poor nations often requires
A) low rates of return to ensure the poor have a fair deal. B) high rates of return to justify the high risk of such investment. C) a constantly changing political structure to enhance profit opportunities. D) the total elimination of uncertainty in order to guarantee economic profit.
Betty is out on a first date with Barney. She decides to order the garden salad with dressing on the side in an effort to make a good first impression, even though she prefers leg of lamb. Economic theory:
A. cannot explain why someone would choose a meal that brings her less utility than another. B. would suggest that making a good impression with her choice will bring her more utility than ordering lamb and making a bad impression. C. would suggest that she values what Barney thinks of her and will derive negative utility if she does not impress him. D. cannot be used to explain matters of the heart.
Your employer pays for your cell phone. The monetary value of this cell phone payment is
A. not included in either economic income or money income. B. included in your economic income, but not your money income. C. included in both economic and money income. D. not included in your economic income, but included in your money income.