If the U.S. interest rate differential increases, in the foreign exchange market the demand for U.S. dollars ________ and the supply of U.S. dollars ________
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
B
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Where do economic agents such as individuals, firms, and nations interact with each other?
A) in any arena that brings together buyers and sellers B) in any location where transactions can be monitored by consumer groups and taxed by the government C) in any physical location where people can physically get together for selling goods, such as shopping malls D) in public locations monitored by the government
According to the above table, at a price of $8 per unit, other things constant
A) consumers will continue to bid prices upward. B) there will be no tendency for the market to approach an equilibrium. C) a surplus of 100 units will exist. D) a shortage of 80 units will exist.
Which of the following is one of the arguments for tariffs?
a. encouraging dumping b. protecting against dumping c. managing exchange rates d. managing interest rates
When a perfectly competitive firm produces where AVC < P < ATC, this is called a
A. break-even position. B. loss-minimizing strategy. C. loss-maximizing strategy. D. profit-minimizing strategy.