Which of the following statements describes the situation shown?
a. The graph shows supply and demand curves for the U.S. dollar.
b. As the price of the euro falls relative to the U.S. dollar, European products become relatively cheaper to U.S. consumers.
c. The graph shows the value of the euro compared to all other currencies.
d. As the price of the euro falls relative to the U.S. dollar, American consumers buy fewer European goods.
b. As the price of the euro falls relative to the U.S. dollar, European products become relatively cheaper to U.S. consumers.
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As increasing amounts of a good are produced, the marginal cost of production tends to
a. rise. b. fall. c. remain constant. d. change unpredictably.
Which of the following events illustrates the law of demand: Other things remaining the same, a rise in the price of a good will ________
A. decrease the quantity demanded of that good B. increase the demand for a substitute of that good C. decrease the demand for the good D. increase the demand for a complement of that good
The differences between monetarist and Keynesian theories are more apparent than real
a. True b. False Indicate whether the statement is true or false
Accounting profits are typically:
A. equal to economic profits because accounting costs include all opportunity costs. B. greater than economic profits because the former do not take implicit costs into account. C. smaller than economic profits because the former do not take implicit costs into account. D. greater than economic profits because the former do not take explicit costs into account.