If the British pound (£) appreciates by 10% against the dollar:
a. both the US importers from Britain and US exporters to Britain will be helped by the appreciating pound.
b. the US exporters will find it harder to sell to foreign customers in Britain.
c. the US importer of British goods will tend to find that their cost of goods rises, hurting its bottom line.
d. both US importers of British goods and exporters to Britain will be unaffected by changes in foreign exchange rates.
e. all of the above.
c
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Other things remaining the same, a fall in the price of peanuts will ________
A. increase the supply of peanuts B. decrease the supply of peanut butter C. decrease the quantity supplied of peanuts D. decrease the supply of peanuts
If on a given product indifference curve, a firm is using an insufficient (nonoptimal) amount of one of its inputs,
A. output will be below optimal. B. the MRP of the input will be below its price. C. costs will not be minimal. D. relative input prices need to change.
In the case of pure monopoly:
a. one firm is the sole producer of a good or service which has no close substitutes b. the firm's profit is maximized at the price and output combination where marginal cost equals marginal revenue c. the demand curve is always elastic d. a and b only e. a, b, and c
Compared with the United States, developing countries
A. face geographic conditions that limit productivity. B. have universal health care that prevent the spread of diseases. C. have more political stability. D. have higher levels of educational attainment.