The world price of a commodity will settle at the level where
a. supply and demand are equal within each country.
b. the excess demand of the importing country is equal to the excess supply of the exporting country.
c. the excess demand in the exporting country is equal to the excess demand in the importing country.
d. there is no excess demand in the exporting country.
b
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If expected future income increases, then
A) the supply of loanable funds increases. B) the quantity of loanable funds supplied decreases. C) the supply of loanable funds decreases. D) the demand for loanable funds decreases. E) the quantity of loanable funds demanded increases.
During the Global Economic Crisis, the increase in the unemployment rate in Europe was
A) equal to that in the United States. B) less than that in the United States. C) greater than that in the United States. D) impossible to compare given that Europe did not experience crises.
An increase in total revenue results occurs from which of the following?
A. Price decreases when demand is inelastic. B. Price increases when demand is elastic. C. Price decreases when demand is elastic. D. Price increases when demand is unitary elastic.
Which statement best describes the overall tax and transfer systems of the United States?
A. Our tax system makes the after-tax distribution of income much more equal than the before-tax distribution B. Our tax system does not by itself reallocate income; transfer payments help redistribute income from rich to poor C. Although some Federal taxes are progressive, this effect is more than offset by the regressivity of state and local taxes which make the overall system extremely regressive D. Recent changes in corporate income taxes and payroll taxes have made our overall tax system more progressive