If people believe that prices are going to be higher in the future then they are today, they will
a. wait until the future to purchase the things they wand
b. decrease their demand now
c. increase their demand now
d. increase their supply now
e. save more today so they have the income to buy more in the future
C
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The ratio of the dollar price of a toy in the U.S. to the dollar price of a toy in China represents the ________ between the two currencies
A) nominal exchange rate B) ordinal exchange rate C) expected exchange rate D) real exchange rate
According to this Application, the failure of including cell phones in a timely manner when calculating the CPI caused the telecommunications component of the price index
A) to become negative. B) to be biased upward. C) to be biased downward. D) to actually register no perceptible bias.
The sum of the components of incomes is called
A) gross domestic product at factor cost. B) net domestic product at market prices. C) gross domestic product at market prices. D) GNP. E) net domestic product at factor cost.
The above figure shows the production possibility frontier for a country. Suppose the country is producing at point A. What is the opportunity cost of increasing the production of rice to 12 tons?
A) 6 thousand bottles of wine B) 9 thousand bottles of wine C) 15 thousand bottles of wine D) 12 tons of rice E) Nothing, it is a free lunch.