Holding other things constant, if the Japanese Yen, depreciates, it makes the Japanese products
a. Less attractive to US customers
b. More attractive to US customers
c. Neither more nor less attractive to US customers
d. None of the above
b
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If all firms in a competitive industry experience an increase in marginal costs, then which of the following is most likely to occur in the short run?
a. Firms will enter the market. b. Existing firms will expand production. c. Firms will shutdown. d. Firms will exit the market.
An increase in unemployment benefits is likely to: a. reduce a person's incentive to look for work
b. reduce the opportunity cost of remaining employed. c. provide a better safety net for employed families. d. decrease the tax imposed on consumers. e. increase the need to accept the first job available after becoming unemployed.
Suppose sellers of liquor are required to send $5.00 to the government for every bottle of liquor they sell. Further, suppose this tax causes the price paid by buyers of liquor to rise by $3.00 per bottle. Which of the following statements is correct?
a. This tax causes the supply curve for liquor to shift upward by $5.00 at each quantity of liquor. b. The effective price received by sellers is $5.00 per bottle less than it was before the tax. c. Forty percent of the burden of the tax falls on buyers. d. All of the above are correct.
Chrissy and Marvin are competitors in a local market and each is trying to decide if it is worthwhile to advertise. If both of them advertise, each will earn a profit of $10,000 . If neither of them advertise, each will earn a profit of $20,000 . If one advertises and the other doesn't, then the one who advertises will earn a profit of $30,000 and the other will earn $14,000 . To earn the highest
profit, Chrissy a. should advertise, and she will earn $10,000. b. should advertise, and she will earn $30,000. c. should not advertise, and she will earn 20,000. d. has no dominant strategy.