The basic assumption behind the J-curve effect is that
A) supply and demand for currencies are less elastic in the short run than in the long run.
B) in the short run, supply will exceed demand; in the long run, they will be equal.
C) an overshooting effect occurs as people adjust to the new information.
D) investors tend to be overly cautious in currency instruments.
A
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In a small Asian country, it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $600. Based on this information, what is the slope of the per-worker production function in this range?
A) 0.06 B) 6.6 C) 66.6 D) 666
What does the study of the balance of international trade and finance between 1790 and 1860 help American economic historians do?
(a) Understand what the U.S. sold to the rest of the world (b) Understand what the rest of the world sold to the U.S. (c) Determine if there is a link between these international patterns and economic growth in the U.S. (d) All of the above
A country's government would like to raise the price of one its most important agricultural crops, coffee beans. Which of the following government programs will result in higher prices for coffee beans?
A) An import quota on coffee beans B) An acreage limitation program which provides coffee bean farmers financial incentives to leave some of their acreage idle C) An import tariff on coffee beans D) all of the above
Darlene runs a fruit and vegetable stand in a medium-sized community where there are many such stands. Her weekly total revenue equals $2,000 . Her weekly total cost of running the stand equals $3,500, consisting of $2,500 of variable costs and $1,000 of fixed costs. An economist would likely advise Darlene to: a. shut down as quickly as possible in order to minimize her losses
b. keep the stand open because it is generating an economic profit. c. keep the stand open for a while longer because she is covering all of her variable costs and some of her fixed costs. d. keep the stand open for a while longer because she is covering all of her fixed costs and some of her variable costs.