If the equilibrium exchange rate changes so that it takes more dollars to buy a British pound, then:
A. the dollar has appreciated in value.
B. Americans will import more British goods.
C. the British will buy fewer U.S. goods.
D. the dollar has depreciated in value.
D. the dollar has depreciated in value.
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The figure above shows the market for coffee. If one firm owns all the coffee outlets and sells 10 million pounds of coffee a month
A) the market is efficient because the marginal social benefit from coffee exceeds its marginal social cost. B) the market is efficient because the total social benefit from coffee exceed the total social cost. C) there is a deadweight loss because the marginal social benefit from the last pound of coffee exceeds its marginal social cost. D) there is a deadweight loss because the marginal social cost of the last pound of coffee exceeds its marginal social benefit.
In a small economy, consumption spending is $6,000, government spending is $1,200, gross investment is $1,500, exports are $2,000, and imports are $1,000. What is gross domestic product?
A) $9,700 B) $9,800 C) $10,800 D) $11,700
The _____ effect indicates that an individual's income can buy more of all goods when the price of one good declines, everything else held constant
a. scale b. endowment c. substitution d. price e. income
Even when two goods are perfect substitutes one can sell at a premium over the other depending on the tastes and preferences of the consumers
Indicate whether the statement is true or false