Other things remaining the same, the ________ the exchange rate for dollars, the greater the ________ in the foreign exchange market
A) higher; quantity of dollars supplied
B) higher; quantity of dollars demanded
C) lower; value of U.S. imports
D) higher; expected profits from holding dollars
A
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"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would
A) have a positive relationshi
Recent research has shown that the first firm to enter a market often does not have a long-term advantage over later entrants into the market. An example that has been used to illustrate this is
A) Xerox, which became a generic term for making photocopies. B) McDonald's entry into the high-end coffee market. C) the introduction of the first ballpoint pen in 1945. D) Abercrombie and Fitch, which was the first clothing company to market to young men.
When making income comparisons across countries, economists generally prefer to use
a. the exchange rate conversion method. b. the consumer price index ratio method. c. the purchasing power parity method. d. the interest rate differential conversion method.
If a firm is a price taker, then the demand curve for the firm's product is
A. unit elastic. B. equal to the total revenue curve. C. perfectly inelastic. D. perfectly elastic.