Which of the following is an important factor in exchange rate movements in the very short run?
a. Changes in relative GDPs.
b. Changes in relative tastes for foreign goods.
c. Changes in relative interest rates.
d. Changes in inflation.
e. None of the above.
C
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Because of diminishing marginal productivity
A) the labor supply curve is not vertical. B) nominal wages are sticky in a downward direction. C) the labor demand curve is negatively sloped. D) households save only a small share of their income.
People always face trade-offs because
A) they always have more than one use for their time and money. B) they buy goods with money. C) trading takes place in a market economy. D) they can make themselves better off through trade.
An example of a final good would be
A) the soy milk sold to Starbucks. B) the whipped cream sold to Starbucks. C) a soy latte sold by Starbucks to a student. D) the coffee beans sold to Starbucks.
A political system that promotes the free and open exchange of ideas:
A. will not have well-defined property rights. B. slows the development of new technologies and products. C. is detrimental to economic growth. D. increases average labor productivity.