If Americans decide to buy more South African diamonds, what is the effect in the foreign market?
A. It will increase demand for U.S. dollars.
B. It will decrease demand for U.S. dollars.
C. It will increase supply of U.S. dollars.
D. It will decrease supply of U.S. dollars.
Answer: C
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Which of the following best describes the services provided by the Federal Reserve?
a. The Federal Reserve provides banking services to commercial banks and other depository institutions but does not provide banking services to the federal government. b. The Federal Reserve does not provide banking services to commercial banks and other depository institutions but provides banking services to the federal government. c. The Federal Reserve provides banking services to commercial banks and other depository institutions and provides banking services to the federal government. d. The Federal Reserve does not provide banking services to commercial banks and other depository institutions and does not provide banking services to the federal government.
Which of the following describes the relationship between interest rates and interest-sensitive goods, such as housing?
a. As interest rates decline, the demand for interest-sensitive goods increases. b. As interest rates decline, the demand for interest-sensitive goods decreases. c. As interest rates increase, the demand for interest-sensitive goods increases, driving prices upward. d. As interest rates increase, the demand for interest-sensitive goods decreases, driving prices upward.
What does a point inside the curve of a PPC indicate?
a. all resources are fully employed b. not all resources are fully employed c. employees are stealing d. workers have sabotaged machinery
Imagine that a firm expands the size of its plant, doubling its total cost of production but more than doubling its output. This situation is known as
A. a violation of the law of diminishing returns. B. economies of scale. C. constant returns to scale. D. diseconomies of scale.