Refer to Scenario 3.1 below to answer the question(s) that follow.SCENARIO 3.1-Streaming movies and movies shown in theaters are substitutes. -Streaming movies and OLED TVs are complements. -OLED TVs and movies shown in theaters are normal goods. -People watch streaming movies more often in the winter than in the summer.Refer to Scenario 3.1. You observe that the price of streaming movies is higher in the winter than in the summer. This would be explained by the fact that
A. demand for streaming movies is higher in the winter than in the summer.
B. the quantity demanded of streaming movies is higher in the winter than in the summer.
C. consumer income tends to fall in the winter and increase in the summer.
D. there are more streaming movies released in the winter than in the summer.
Answer: A
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If the price level in the United States is 110, the price level is 120 in Mexico, and the nominal exchange rate is 140 pesos per dollar, what is the real exchange rate from the U.S. perspective?
A) 94 B) 115 C) 128 D) 153
Which of the following is not one of the ways that antitrust laws promote competition?
a. Antitrust laws allow the government to prevent mergers. b. Antitrust laws allow the government to break up companies into smaller ones. c. Antitrust laws prevent companies from coordinating their activities in ways that make markets less competitive. d. Antitrust laws allow the government to shut down any firm the government believes has monopoly power.
For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $11 and a marginal cost of $10 . It follows that the
a. production of the 100th unit of output increases the firm's profit by $1. b. production of the 100th unit of output increases the firm's average total cost by $1. c. firm's profit-maximizing level of output is less than 100 units. d. production of the 101st unit of output must increase the firm's profit by more than $1.
A country that has absolute advantage in producing all goods does not benefit from trade.
a. true b. false