Assume that Country X and Country Y are trading partners and the exchange rates are fixed. If prices in Country Y fall, which of the following is expected to happen?
a. Country X will export more.
b. Economy of Country X will be depressed.
c. Net exports will rise for Country X.
d. Country Y will import more.
b
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The economy has gone into a recession. You have majored in computer science and, because of the recession, have difficulty in finding a job. According to the information in the chapter, should you go back to school and get a second major?
A) Yes, the recession will ensure that you will never find a job as a programmer. B) Yes, the recession will lower income in my field permanently. C) No, the recession will most likely be short-lived and I can get a job after it is over. D) No, the recession will have no impact on my ability to get a job or my future income.
Asymmetric information may cause
A. used goods in excellent condition to not be sold. B. used goods in poor condition to not be offered for sale. C. sellers with goods in excellent condition to accept prices below their willingness to sell. D. sellers with goods in excellent condition to ship the goods to other markets.