Figure 19-3
?
Of the graphs in Figure 19-3, where the dotted line shows the actual exchange rate, which one shows a country with an undervalued currency and a balance of trade surplus?
A. 1
B. 2
C. 3
D. 4
Answer: B
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Which of the following normative criteria rejects a policy whenever there exists an alternative policy that could unanimously defeat it?
a. Majority rule. b. The efficiency criterion. c. The Pareto criterion. d. The potential Pareto criterion.
So long as a firm is enjoying increasing marginal returns, a one unit increase in output will cause marginal costs to ________ and total costs to ________
A) increase; increase B) decrease; increase C) increase; decrease D) decrease; decrease
There is less of a principal-agent problem between managers and apple pickers than between managers and secretaries because
a. apple pickers naturally work harder b. secretaries get paid less than their worth c. productivity is easier to measure in apple picking than in secretarial services d. a secretary's marginal product is easier to estimate than an apple picker's e. managers can watch apple-pickers more closely than they can secretaries
Suppose the federal government had budget surpluses of $80 billion in year 1 and $120 billion in year 2 but had budget deficits of $10 billion in year 3 and $40 billion in year 4. Also assume that it used its budget surpluses to pay down the public debt. At the end of these four years, the federal government's public debt would have
A. increased by $50 billion. B. decreased by $200 billion. C. increased by $150 billion. D. decreased by $150 billion.