The combined effects of a fiscal contraction and a monetary expansion are
A. higher real interest rates.
B. exchange rate depreciation.
C. increased current account deficit.
D. All of these responses are correct.
Answer: B
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The situation in which a firm is able to charge the maximum price consumers are willing to pay for each unit of output the firm sells is referred to as:
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) fourth-degree price discrimination.
If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are greater than the external costs,
a. More than the efficient amount is being produced b. Less than the efficient amount is being produced c. the efficient amount is being produced d. We do not know whether the efficient amount, or more or less, is being produced.
Which of the following is not correct?
a. Across countries there are large differences in the average income per person. These differences are reflected in large differences in the quality of life. b. With a growth rate of about 2 percent per year, average income per person doubles about every 60 years. c. The ranking of countries by average income changes substantially over time. d. In some countries real income per person has changed very little over many years.
A given income-expenditure diagram always assumes a variable price level.
Answer the following statement true (T) or false (F)