If the Japanese government enters the foreign exchange market and purchases yen to attain a specific exchange rate with the dollar, the dollar will ________ and the yen will ________.
A. depreciate; depreciate
B. depreciate; appreciate
C. appreciate; depreciate
D. appreciate; appreciate
Answer: B
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Which of the following represent problems encountered by the Organization for Petroleum Exporting Countries (OPEC) oil cartel?
a. There has been considerable cheating by OPEC members on their quantity allocations. b. The United States has accused the OPEC for price fixing and has partially banned oil cartels. c. World demand for oil has declined by approximately 1/3 since the mid-1970's, making it extremely difficult for OPEC to maintain satisfactory prices and revenues for its members. d. The high production costs incurred by all the OPEC members prompts them to break the cartel and charge a high price in the international market.
The labor-force participation rate is computed as
a. (Employed Adult Population) 100. b. (Employed Labor Force) 100. c. (Labor Force Adult Population) 100. d. (Adult Population Labor Force) 100.
In the following graph, the price of capital is $100 per unit; the price of labor is $25 per unit. How much does the seventh unit of output add to total cost?
A. nothing B. $400 C. $800 D. $4,000 E. $8,000
A consumer will achieve the highest level of utility possible when she consumes
A. at a point to the left of the budget constraint. B. at the point at which the indifference curve crosses the budget constraint. C. just below the point where the indifference curve crosses the budget constraint. D. at the point at which the highest indifference curve is tangent to the budget constraint.