The substitution effect reflects how a consumer will react to a different:
A. level of nominal income.
B. marginal rate of substitution.
C. level of real income.
D. market rate of substitution.
Answer: D
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Under a fixed exchange rate system, a balance of payments deficit may:
A) decrease the country's money supply if there is a non-sterilized central bank intervention. B) decrease the country's money supply if there is a sterilized central bank intervention. C) increase the country's money supply if there is a non-sterilized central bank intervention. D) increase the country's money supply if there is a sterilized central bank intervention.
Which of the following games will have a solution in mixed strategies?
a. A price-fixing game b. A Prisoner's dilemma c. A drafting game used by racing cars. d. A product choice game with asymmetric profits
Which statement is FALSE considering both advantages and disadvantages of corporations as a legal business organization?
A. Corporations usually are not as well positioned as proprietorships and partnerships to raise large sums of financial capital. B. Perhaps the greatest advantage of corporations is that their owners (the shareholders) enjoy limited liability-limited to the value of their shares. C. Separation of ownership and control is a disadvantage of the corporate structure; owners and managers may have different incentives. D. Legally the corporation continues to exist even if one or more owners cease to be owners.
If 1 U.S. dollar exchanges for 3.98 Polish zlotys, how much would it cost in zloty to purchase a Ford Explorer priced at $23,000?
What will be an ideal response?