Suppose that the price of a bag of jellybeans is $6, and the price of a bottle of cola is $2. The relative price of cola is
A) 3 bags of jellybeans per bottle of cola.
B) 2 bags of jellybeans per bottle of cola.
C) 1/3 bag of jellybeans per bottle of cola.
D) $2.
C
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Alice, Bob, and Cody live in Wesland. Their annual incomes and the amounts they pay in income tax are shown in the table below. Income Tax Alice 30,000 6,000 Bob 50,000 7,500 Cody 100,000 12,000 The income tax in Wesland is
A) proportional. B) regressive. C) flat-rate. D) progressive.
Purchasing power parity is the theory that, in the long run, exchange rates should be at a level such that equivalent amounts of any country's currency
A) should earn the same real rate of return. B) are valued inversely relative to the size of its GDP. C) will equalize nominal interest rates across countries. D) allow one to buy the same amount of goods and services.
One problem with the infant industry argument is that
A) the protection is typically never removed, creating a domestic monopoly. B) it fails to protect domestic industries from foreign competition. C) it must be approved by the IMF and the World Bank. D) it must be approved by the Federal Reserve Board.
A country has a growth rate of 3%. Government spending is 60 billion units of currency and its tax revenues are 32 billion units of currency. The current national debt is 400 billion units of currency. At which inflation rate is its debt-to-income ratio unchanged?
a. 2% b. 3% c. 4% d. 5%