If the rate of exchange between the U.S. dollar and the British pound were £1.00 to $2.00, then a U.S. tourist buying a British product costing 600 pounds would need to exchange dollars in the amount of
a. $2,400.
b. $600.
c. $300.
d. $1,200.
d. $1,200.
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In each of the following scenarios, state whether the labor supply curve would shift to the left, to the right, not shift at all, or if the shift is ambiguous because there is more than one effect and they would move the curve in opposite directions.(a)The stock market rises sharply.(b)Fewer teenagers work while in school than before.(c)A large fraction of the population flees the country because of a bird flu epidemic.(d)The expected future wage declines and the stock market crashes.(e)The current real wage rate rises.
What will be an ideal response?
According to the classical theory, an inward shift in aggregate demand would reduce
A) real Gross Domestic Product (GDP) and the price level. B) the price level but have no effect on real Gross Domestic Product (GDP). C) real income but have no impact on the price Gross Domestic Product (GDP). D) the price level but increase real Gross Domestic Product (GDP).
The international financial market moved towards equilibrium under the gold standard due to
A) shifts in exchange rates caused by changes in supply and demand for foreign exchange. B) changes in interest rates. C) negotiations among central banks. D) flows of gold among countries.
If a market is initially operating competitively and then the government imposes a price floor above the equilibrium price,
a. there will be more resources will be devoted to the production of this product b. quantity demanded will rise c. producer surplus will fall in the short run d. imposition of the floor is probably a positive-sum game e. consumer surplus will fall