The supply of domestic assets ________
A) is insensitive to changes in the nominal exchange rate
B) rises when the nominal exchange rate rises
C) falls when the nominal exchange rate rises
D) equals the value of exports minus the value of imports
A
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The federal government, in order to fund expanded health care, imposes a lump-sum tax on all business property. Profit-maximizing firms that stay in business will respond by
A. raising prices to pay the tax. B. cutting output to reduce costs. C. lowering prices to stimulate demand. D. doing nothing.
Refer to Scenario 2 . Over a long period of time, in the absence of any restrictions in the market, would you expect the price elasticity of demand for crabs to be more elastic or inelastic? Explain
What will be an ideal response?
Your indifference curves for good X (horizontal axis) and good Y (vertical axis) are vertical lines because you do not gain any satisfaction from consumption of Y
As the price of X declines, the change in consumption of X is entirely composed of the: A) income effect. B) substitution effect. C) Giffen effect. D) independent good effect.
A rightward shift of a demand curve is called a(n):
a. increase in demand. b. decrease in demand. c. increase in quantity demanded. d. decrease in quantity demanded. e. increase in supply.