If the exchange rate between the United States and Japan changes from $1 = 100 yen to $1 = 110 yen, then, ceteris paribus, the price of American goods in Japan
A. will remain the same.
B. will decrease.
C. will increase.
D. could either increase or decrease.
Answer: C
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The absolute price of beef in Japan is $10.00 per pound and the absolute price of tuna is $5.00 per pound then the relative price of tuna in terms of beef is
a. one-half. b. two. c. fifteen. d. fifty.
A minimum wage that is set above a market's equilibrium wage will result in an excess
a. demand for labor, that is, unemployment. b. demand for labor, that is, a shortage of workers. c. supply of labor, that is, unemployment. d. supply of labor, that is, a shortage of workers.
If a firm has reached the minimum efficient scale, any additional output produced by the firm will result in a lower average cost in the long run.
Answer the following statement true (T) or false (F)
Suppose that Helen has $50 to spend. Tacos cost $2 and burritos cost $5. Which of the following combinations is not on her budget line?
A. 0 tacos and 10 burritos B. 0 burritos and 25 tacos C. 8 burritos and 5 tacos D. 10 burritos and 3 tacos