If the exchange rate between the yen and the dollar changed from 110 yen = $1 to 100 yen = $1, then
a. the dollar depreciated
b. U.S. goods will become more expensive to the Japanese
c. the dollar appreciated
d. Japanese goods will become less expensive to U.S. citizens
e. the demand for dollars will decrease
A
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For which pairs of goods is the cross-price elasticity most likely to be positive?
a. peanut butter and jelly b. bicycle frames and bicycle tires c. pens and pencils d. college textbooks and iPods
In the graph shown, the country has:
A. a trade deficit. B. a budget deficit. C. a trade surplus. D. neither a trade deficit nor trade surplus; exports are equal to imports.
The most desired goods and services that are foregone in order to obtain something else are the
A. Average total cost. B. Marginal cost. C. Opportunity cost. D. Variable cost.
Suppose that tacos and pizza are substitutes, and that soda and pizza are complements. We would expect an increase in the price of pizza to:
A. reduce the demand for tacos and increase the demand for soda. B. reduce the demand for soda and increase the demand for tacos. C. increase the demand for both soda and tacos. D. reduce the demand for both soda and tacos.