In what way is a stronger yen/weaker dollar a burden for Japanese exporters?
A) They received dollars when they sell goods but most of their costs of production are in yen.
B) They receive yen when they sell goods but most of their costs of production are in dollars.
C) The price of their exports will decline, resulting in lower profits.
D) The stronger yen is likely to increase Japanese inflation, resulting in lower profits.
A
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Refer to Figure 2-15. In the circular flow diagram, market K represents
A) product markets. B) households. C) firms. D) factor markets.
When a temporary adverse supply shock hits a large open economy, it causes the current account to ________ and investment to ________
A) fall; fall B) rise; remain unchanged C) fall; remain unchanged D) rise; fall
Faster economic growth in the United States may lead to the serious macroeconomic problem of higher
a. levels of unemployment. b. federal budget deficits. c. levels of inflation. d. levels of poverty.
A price ceiling is
a. often imposed on markets in which "cutthroat competition" would prevail without a price ceiling. b. a legal maximum on the price at which a good can be sold. c. often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling. d. All of the above are correct.