In a monetary system, people will exchange a good for
a. another good.
b. a service.
c. money.
d. gold or other precious metals.
c
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When exchange rates are not determined in the market but are instead set by a country's central bank, we say that the country's exchange rate is
A) fixed. B) a real exchange rate. C) flexible. D) a nominal exchange rate.
Table 35.1CountryTons of SoybeansComputerChina100300United States150750Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods. The opportunity cost of producing 1 ton of soybeans in the United States is
A. 1/3 of a computer. B. 1/5 of a computer. C. 3 computers. D. 5 computers.
Which of the following tends to cause business investment in plant and equipment to decline?
a. an increase in corporate profits b. higher real interest rates c. lower real interest rates d. optimistic expectations
Suppose the demand for good X, an agricultural product, is price-inelastic. This means that small variations in the quantity of X produced will be associated with large variations in the:
A. Price of good X B. Incomes of consumers of good X C. Cost of producing good X D. Quantity of good X exchanged