To offset an increased demand for its currency, a government fixing its exchange rate
A. must make it illegal to sell its currency.
B. must increase the supply of the foreign currency.
C. must increase the supply of its currency.
D. must sell gold or some other precious metal.
Answer: C
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Effective cooperation among the members of a commercial society is more likely when
A) economic decisions are placed in the hands of democratically-elected committees. B) everyone's income is approximately the same. C) people produce for use rather than for profit. D) prices do not change in response to temporary changes in circumstances. E) property rights are clearly defined.
When future labor income falls in a large open economy, it causes the current account to ________ and investment to ________
A) fall; rise B) rise; remain unchanged C) fall; fall D) rise; rise
The marginal revenue product of land curve indicates
a. the additional output generated by an additional unit of land, other things constant b. the additional cost to the firm when it employs an additional unit of land, other things constant c. the additional profit the firm earns when it employs an additional unit of land, other things constant d. the additional revenue the firm earns when it employs an additional unit of land, other things constant e. the amount of land required to produce an additional unit of output, other things constant
If fixed costs were raised to $50 in Cost Calculations for Pizza Shack Company, which other columns would change?
a. 4, 5, 7, 8
b. 1, 4, 5, 7
c. 3, 4, 5, 7
d. 4, 5, 6, 7