From 1980-1985, the dollar strengthened in value against other currencies. Who was helped and who was hurt by this strong dollar?
What will be an ideal response?
American consumers benefitted because imports were cheaper and consumers could purchase more. American businesses and workers in those businesses were hurt as domestic and foreign sales of American products fell.
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A good is considered to be a public good if it
a. is a good produced by the government sector. b. is both nonrival-in-consumption and nonexcludable. c. benefits only a small group of consumers but is very costly to produce. d. is a good whose production is financed by tax revenue.
The scientific evidence on the causes and consequences of global warming
a. is clear and indisputable. b. has considerable uncertainty in its findings. c. indicates global warming should be stopped regardless of cost. d. is of no importance to economists.
Suppose that gasoline prices increase dramatically this month. Lola commutes 100 miles to work each weekday. Over the next few months, Lola drives less on the weekends to try to save money. Within the year, she sells her home and purchases one only 10 miles from her place of employment. These examples illustrate the importance of
a. the availability of substitutes in determining the price elasticity of demand. b. a necessity versus a luxury in determining the price elasticity of demand. c. the definition of a market in determining the price elasticity of demand. d. the time horizon in determining the price elasticity of demand.
Most spells of unemployment are short, and most unemployment observed at any given time is short-term
a. True b. False Indicate whether the statement is true or false