Other things constant, if Americans suddenly decreased their desire for Mexican tequila, the exchange rate value of the Mexican peso would
a. increase, which is an appreciation of the Mexican peso.
b. increase, which is a depreciation of the Mexican peso.
c. decrease, which is an appreciation of the Mexican peso.
d. decrease, which is a depreciation of the Mexican peso.
D
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Your boss explains to you that the total fixed costs of the company are $1 million. He also informs you that each unit of production will cost twenty five cents more with each 100-unit increase
He has asked you to draw the fixed costs of the company with costs on the vertical axis and quantity of goods sold on the horizontal axis. Without drawing a graph tell your boss what the graph will look like using words. What information did your boss give you that you didn't need in order to draw the graph?
When a monopolist increases output, total revenue will:
A. increase if the price effect outweighs the quantity effect. B. decrease if the quantity effect outweighs the price effect. C. increase if the quantity effect outweighs the price effect. D. increase but it will have no price effect.
Customer discrimination results in
A. a segregated workforce. B. lower wages for the discriminated against worker group. C. a lower output price regardless of who the firm hires. D. lower firm profits. E. All of these are results of customer discrimination.
All of the following are consequences of an economy operating above its potential level except:
A. high rates of inflation. B. stable prices. C. high interest rates. D. low unemployment.