Assume there is an increased demand in the United States for Australian wines. If all other factors are held constant, this will result in
A) an increase in the U.S. dollar exchange rate for Australian dollars.
B) an appreciation of the U.S. dollar.
C) a movement along the demand curve for Australian wine.
D) a decrease in the par value of the Australian dollar.
A
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When we compare economic welfare in a monopoly market to a competitive market, the profits earned by the monopolist represent
a. a transfer of benefits from the consumer to the producer. b. a loss in total welfare. c. the higher marginal costs incurred by the monopolists in comparison to competitive firms. d. the higher marginal revenues gained by the monopolists in comparison to competitive firms.
Recall the Application about the behavior of prices in retail catalogs to answer the following question(s). This Application examines the concept of:
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Daily Output of Russia and Panama?RussiaPanamaGloves 40240Hats120180
Refer to Table 18.1. Panama has a comparative advantage in:
A. hats. B. gloves. C. both hats and gloves. D. neither hats nor gloves.