If the number of dollars needed to buy a representative basket of goods falls, the price level
a. falls, so the value of money falls.
b. falls, so the value of money rises.
c. rises, so the value of money falls.
d. rises, so the value of money rises.
b
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Most developing countries have tried to
A) liberalize capital movement. B) control capital movements. C) Hard to tell from the data. D) in the 1960s and 1970s control, now to liberalize. E) in the 1960s and 1970s liberalize, now to control.
For a commitment strategy to work:
A. the punishment must occur immediately after the game is played. B. the punishment must be so bad that it outweighs the incentive to defect in the game. C. no player may have a dominant strategy. D. both players must agree to a punishment.
As you move down an isoquant:
A. production remains technically efficient. B. the marginal rate of substitution does not change. C. more of all inputs must be used to keep output constant. D. production remains economically efficient.
Because demand for air travel from people who are traveling on vacation is ________, the airlines offer leisure travelers lower prices than business travelers.
A. larger B. more elastic C. more inelastic D. smaller