The real exchange rate measures the
a. price of domestic currency relative to foreign currency.
b. price of domestic goods relative to the price of foreign goods.
c. rate of domestic and foreign interest.
d. None of the above is correct.
b
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It is possible for the government to remove individuals from a prisoner's dilemma setting and make them better off.
Answer the following statement true (T) or false (F)
Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment
a. True b. False Indicate whether the statement is true or false
Which of the following correctly identifies an impact of the opening of trade for an industry with external economies?
A. Consumers of the product in the importing country lose consumer surplus. B. Producers of the product in the exporting country lose producer surplus. C. Producers of the product in the importing countries lose producer surplus. D. Consumers of the product in the exporting country lose consumer surplus.
Figure 6.3 shows the cost structure of a firm in a perfectly competitive market. If the market price is $3 and the firm shuts down in the short run, its profit is:
A. -$300. B. -$600. C. -$900. D. -$1,200.