When exchange rates are not determined in the market but are instead set by a country's central bank, we say that the country's exchange rate is
A) fixed. B) a real exchange rate.
C) flexible. D) a nominal exchange rate.
A
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Suppose aggregate demand is increasing over time. Would the modern Keynesian model assume that the price level would always be constant? Explain
What will be an ideal response?
A world-renowned brain surgeon can type twice as fast as her secretarial assistant. Which of the following statements is true in this situation?
a. The secretary has an absolute advantage in typing. b. The surgeon should do her own typing to save money. c. The surgeon should fire the assistant and work weekends and evenings to stay up on her typing. d. The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the secretary has a comparative advantage in typing. e. The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the surgeon has a comparative advantage in typing.
Which of the following is true about producer surplus?
a. Producer surplus is how much more it costs sellers than they are paid b. Producer surplus is shown graphically as the area under the demand curve but above the supply curve. c. An increase in the market price due to an increase in demand will increase producer surplus. d. All of the above are true about producer surplus.
Because nothing in life is free, the cost of a price ceiling program is chronic excess supply
Indicate whether the statement is true or false