The principal reason why Thailand, Indonesia, and South Korea feared the effects of appreciation of the U.S. dollar in 1995–1997 was that
A. it would increase exports from these countries and worsen Japanese.
B. it would increase exports from these countries and worsen unemployment.
C. it would decrease exports from these countries since their currencies were tied to the dollar.
D. it would decrease imports to these countries since their currencies were tied to the dollar.
Answer: C
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"When the cost of producing a unit of a good falls as its output rate increases" is the definition of
A) economies of scope. B) economies of scale. C) economic efficiency. D) technological efficiency.
Acme Tools manufactures anvils, a forging tool. When the price of anvils was increased from $7 to $13, Acme Tools was willing and able to increase production from 1 to 4 units per day. Using the midpoint formula, what is Acme's price elasticity of supply for anvils?
a. 2 b. 1 c. 0.5 d. 4 e. 3.5
Total fixed cost
a. varies with the level of output. b. has a downward-sloping curve. c. has an upward-sloping curve. d. is constant at all levels of output.
The external costs of cigarettes are related to the health problem smoking produces for both smokers and nonsmokers. One estimate places these costs at 29 cents per pack. Presently, sales and excise taxes on cigarettes average about 37 cents per pack. These estimates suggest that (i) cigarette consumption is below the optimal or efficient quantity; (ii) cigarette taxes should be reduced.
A. i and ii B. i but not ii C. ii but not i D. neither i nor ii