Distinguish between a voluntary export restraint and a quota
What will be an ideal response?
A voluntary export restraint is an agreement negotiated between two countries that places a numerical limit on the quantity of a good that can be imported by one country from the other country. A quota is a numerical limit imposed by the government on the quantity of a good that can be imported into a country.
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If the Fed sells euros valued at $100 million to commercial banks, will this change the size of the Fed's liabilities and assets? Explain.
What will be an ideal response?
The essential feature that differentiates imperfectly competitive firms from perfectly competitive firms is that an imperfectly competitive firm:
A. coordinates their output decisions with other firms. B. produces a good with no close substitutes. C. faces a downward-sloping demand curve. D. faces high barriers to entry.
What is the most likely explanation for how the percentages are allocated to each category of the CPI?
a. They reflect the proportion of income the average American spends on that category.
b. They reflect the relative vulnerability of each category to inflation.
c. They reflect the relative expensiveness of the items in each category.
d. They reflect the proportion needed to keep the rate of inflation stable from year to
year.
A change in the slope of a budget line is solely the result of a change in:
A. consumer preferences. B. the price of one good relative to the other. C. money income. D. the slope of the indifference curve that is tangent to the budget line.