The gridlock and smog that are associated with traffic in large cities are considered:
A. direct costs.
B. business costs.
C. external costs.
D. equilibrium costs.
Answer: C
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As the dollar price of a foreign currency (for example, dollars per yen) increases, __________ dollars will be demanded by foreigners, U.S. goods will be __________ expensive for foreigners, __________ U.S. goods will be purchased by foreigners, and __________ foreign currency will be supplied to the foreign exchange market
A) more; less; more; more B) more; less; more; less C) fewer; more; fewer; less D) fewer; more; fewer; more
If the Internet helps buyers learn about the availability of products and find potential sellers more quickly,
a. the volume of trade will decline. b. buyers will be better off, but sellers will be worse off. c. transaction costs will rise. d. the gains from trade will increase.
Suppose that today 1 British pound exchanges for $1.60. If next week 1 pound exchanges for $1.70, it is clear that
A. The dollar has appreciated relative to the pound. B. The pound has depreciated relative to the dollar. C. The dollar has depreciated relative to the pound. D. Both currencies have appreciated.
You operate a shop that repairs TVs and VCRs. The going wage rate in a competitive market for skilled repair people is $18 per hour. Given the current demand for your services, the marginal revenue product of your repair people is $28 per hour. You should
A. increase the number of repair people working for you. B. decrease the number of repair people working for you. C. make no change in the number of people you use. D. lay off all your employees and do all the work yourself.