Holding all else constant, an increase in preferences by Mexicans for U.S. goods will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; increase
B. decrease; decrease
C. increase; decrease
D. decrease; increase
Answer: A
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Creative destruction:
A) leads to the benefit of all economic agents. B) is more likely in an economy with extractive institutions. C) leads to losses of all economic agents. D) is more likely in an economy with inclusive institutions.
What is the best outcome for society: When firms in an oligopoly operate as a monopoly or when they act as perfect competitors? Briefly explain your answer
What will be an ideal response?
In the figure below, $40,000 for certain is as desirable as $47,000 with risk.
A. True
B. False
C. Uncertain
If you were to start your own business, your implicit costs would include the:
A. opportunity cost of the time you spend working at the business. B. interest that you pay on your business loans. C. profit you earn over and above your normal profit. D. rent that you have paid in advance for the use of a building.