Under a system of freely flexible (floating) exchange rates an American trade deficit with Mexico will tend to cause
A. the United States government to ration pesos to American importers.
B. a flow of gold from the United States to Mexico.
C. an increase in the peso price of dollars.
D. an increase in the dollar price of pesos.
D. an increase in the dollar price of pesos.
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The unregulated, single-price monopolist illustrated in the figure above has a total revenue of
A) $8.00 per day. B) $16.00 per day. C) $36.00 per day. D) $40.00 per day.
Use the Cobb-Douglas production function to show that a one-unit increase in the labor input will reduce the marginal product of labor and increase the marginal product of capital. Explain each of these results
What will be an ideal response?
In U.S. history, use of a commodity-backed paper currency is associated with the
A) Free Banking Era. B) Confederacy during the Civil War. C) gold standard. D) Bretton Woods Agreement.
The marginal rate of substitution is
A. the set of goods and services that are available to the consumer given his income. B. positively related to the level of income. C. the change in the quantity of one good that just offsets a one unit change in the consumption of another such that the total satisfaction remains constant. D. the additional satisfaction from consuming an additional unit of a good or service.