When the exchange rate appreciates in the short run and then depreciates to its original level in the long run, it implies that the domestic money supply has:
a. temporarily risen.
b. permanently risen.
c. temporarily fallen.
d. permanently fallen.
Ans: c. temporarily fallen.
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When consumer spending is high, the economy usually is in a(n)
A. depression. B. growth stage. C. inflationary period. D. recession.
Which of the following best explains an economic criticism of unregulated monopolists?
A. Monopolists do not try to minimize their fixed costs of production. B. Monopolists produce where marginal revenue is greater than marginal costs. C. Monopolists attempt to produce too many products, and as a result, their prices are high, and consumer's waste time trying to choose between too many options. D. Monopolists restrict output, and as a result, they fail to produce units that are valued more than the marginal cost of producing them.
Which of the following provides the closest measure of the rate of change in the prices paid by households?
A. GDP deflator B. BLS deflator C. PPI D. PCE deflator
Lauren makes $150 a day as a bank clerk. She takes two days off work without pay to fly to another city to attend the concert of her favorite band. The cost of transportation and lodging for the trip is $250. The cost of the concert ticket is $50. The opportunity cost of Lauren's decision to attend the concert is
A. $600. B. $450. C. $250. D. $300.