What does it mean when an economist says that a currency has become stronger?
(A) Services, unlike goods, can be exported freely.
(B) There are very few things that the currency cannot buy in a foreign market.
(C) The currency can be exchanged for more of a foreign currency.
(D) The currency will buy less of foreign goods.
Ans: (C) The currency can be exchanged for more of a foreign currency.
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A corner solution to a consumer's utility maximization problem implies (Select all that are true.)
consuming a positive amount of one good and zero of the other good. consuming a positive amount of all goods. consuming more than an optimal amount of at least one good. spending all income. spending less than full income. the goods are imperfect substitutes the goods are perfect substitutes
Since World War II, the likelihood that foreign markets would gain importance to average exporters as a source of profits has
A) remained constant. B) increased. C) decreased. D) fluctuated widely with no clear trend. E) increased slightly before dropping off.
For a firm facing a downward sloping demand curve, marginal revenue
A) is at a minimum at the midpoint of the demand curve. B) is greater at higher prices than at lower prices. C) increases each time prices are lowered. D) falls each time prices are raised.
As the price of gasoline rose during the 1970s, consumers cut back on their use of gasoline relative to other consumer goods. This situation contributed to which bias in the consumer price index?
a. Substitution bias. b. Transportation bias. c. Quality bias. d. Indexing bias.