The demand for dollars is downward sloping because when dollar appreciates,
a. Foreigners demand more US goods and services
b. Foreigners demand fewer US goods and services
c. Foreigners demand more dollars
d. Foreigners do not change their demand for US goods and services
QUESTION 2The following is an example of adverse selection
a. A majority of those applying for well paid jobs are well qualified
b. More reckless drivers opt for cars with more safety devices
c. Individuals living in less secure neighborhoods want to buy less insurance
d. Individuals with a strong family history of heart diseases opt to buy less insurance
QUESTION 3A consumer values a car at 525,00 . and a producer values the same car at 485,000 . If the transaction is completed at 510,000 . what amount of tax will result in unconsummated transaction?
a. A tax of 9,000
b. A tax of 14,000
c. A tax of 15,000
d. A tax of 18,000
QUESTION 4An individual in the US wants to buy a car from England which costs 12,000 pounds. If the exchange rate is 1 pound = 1.75, how much would the car cost him in dollars?
a. 21,000
b. 6,800
c. 12,000
d. Need more information
QUESTION 5The following is an example of adverse selection
a. A majority of those applying for well paid jobs are under qualified
b. More reckless drivers opt for cars with fewer safety devices
c. Individuals living in less secure neighborhoods want to buy less insurance
d. Individuals with a strong family history of heart diseases opt to buy less insurance
QUESTION 6A consumer values a car at 525,00 . and a producer values the same car at 485,000 . If the transaction is completed at 510,000 . the transaction will generate:
a. No surplus
b. 25,00 . worth of seller surplus and unknown amount of buyer surplus
c. 15,00 . worth of buyer surplus and 25,00 . of seller surplus
d. 25,00 . worth of buyer surplus and unknown amount of seller surplus
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