Suppose an appreciation of the French franc causes U.S. prices of French wine imports to rise sharply. On the other hand, Californian wine becomes relatively inexpensive to French consumers. Other things equal, this will result in:
a. an increase in U.S. aggregate expenditures and an increase in the aggregate quantity of U.S. goods and services demanded.
b. a decrease in U.S. aggregate expenditures and a decrease in the aggregate quantity of U.S. goods and services demanded.
c. an increase in U.S. aggregate expenditures and a decrease in the aggregate quantity of U.S. goods and services demanded.
d. no change in either U.S. aggregate expenditures or the aggregate quantity of U.S. goods and services demanded.
e. a decrease in U.S. aggregate expenditures and an increase in the aggregate quantity of U.S. goods and services demanded.
a
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A firm could differentiate its product by all of the following means except one. Which is the exception?
a. making the product available at a number of different locations b. increasing the number of services that accompany the product c. making the product physically different from other products d. using packaging or advertising to create a special subjective image of the product in the consumer's mind e. emphasizing that the product provides the same benefits to consumers as the others on the market, even when it is really physically different
Suppose an early freeze decreases the supply of oranges. The equilibrium quantity in this market will not change after the change in supply if the demand curve were: a. perfectly horizontal. b. perfectly vertical
c. downward sloping. d. upward sloping.
Along the inelastic portion of a demand curve,
a. the change in price will always be less than the change in quantity demanded. b. the percentage change in price will be less than the percentage change in quantity demanded. c. the change in price will always be more than the change in quantity demanded. d. the percentage change in price will be more than the percentage change in quantity demanded.
The ¬_______ is a way to fix exchange rates by defining each participating currency in terms of gold and allowing holders of each participating currency to convert that currency into gold.
A. gold standard B. silver standard C. bronze standard D. none of these