Refer to Figure 19-10. Under the Bretton Woods System of exchange rates, if the par exchange rate was $2 per pound in the figure above, and equilibrium persisted at $3, then this was evidence of ________ and the IMF would allow a ________ in the
exchange rate.
A) fundamental disequilibrium; revaluation B) fundamental disequilibrium; devaluation
C) fundamental overvaluation; revaluation D) fundamental overvaluation; devaluation
A
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Other things remaining the same, which of the following is likely to cause a decrease in both the wage rate and the number of workers hired in a glass factory?
A) The introduction of labor-saving technology in the factory B) The introduction of labor-complementary technology in the factory C) A decrease in the population in the region where the factory is located D) An increase in the population in the region where the factory is located
Consider the market for bicycles. If a dealer cuts prices by 10 percent and sells 20 percent more bikes, then demand for bicycles is
a. inelastic, and total revenue will increase b. elastic, and total revenue will increase c. inelastic, and total revenue will decrease d. elastic, and total revenue will decrease e. unit elastic, and total revenue will remain the same