Suppose that the exchange rate between Japanese yen and U.S. dollars is originally 130 yen to the dollar. If it then changes to 150 yen to the dollar, the price of U.S. goods to Japanese importers will:
a. rise
b. fall.
c. stay the same.
d. change in an indeterminate direction.
a
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Marginal cost can be expressed as the ration of the price of labor and the Marginal Product of Labor
a. only when labor is held constant. b. only when labor is the only variable input. c. wether labor is held constant or not. d. never.
Why do landlords tend to discriminate against a person's race, religion, or age more when rent controls are imposed?
A) Landlords are naturally racist and bigoted. B) Only minority groups will take an interest in apartments with controlled rents. C) Economists will encourage landlords to discriminate. D) Rent controls lower the personal costs of discriminatory behavior among landlords. E) For all of the above reasons.
Production functions A and B result in the same average total costs of production. However, production function A is twice as capital intensive as production function B. In this case, all else constant:
A) marginal costs will be higher in A than they are in B. B) marginal costs will be higher in B than they will in A. C) because total costs are equal, marginal costs will be equal for the two production functions as well. D) there is no way to say anything about the relative marginal costs of production in the two production functions without additional information.
The economist assumes that people act in accordance with the equimarginal principle, because the economist assumes that people are
a. altruistic. b. selfish. c. rational. d. price takers.