After a permanent increase in the money supply
A) the exchange rate overshoots in the short run.
B) the exchange rate overshoots in the long run.
C) the exchange rate smoothly depreciates in the short run.
D) the exchange rate smoothly appreciates in the short run.
E) the exchange rate remains the same.
A
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A negative externality exists when
A. a person's or group's actions cause a benefit that is felt by others. B. a person's or group's actions cause a cost that is felt by others. C. market output is less than socially optimal output. D. a and c E. b and c
The conditions in which vertical relationships can enhance a firm's ability to price discriminate include
a. the manufacturer's product is of value to just one type of customer b. the costs of arbitraging the price difference across markets is small c. the manufacturer acquires the distributer in the higher priced market d. competition provides little ability for the manufacturer to price above marginal cost
Which statement is false?
A. Germany pays higher manufacturing wage rates than the U.S. does. B. The United States pays the highest manufacturing wage rates in the world. C. Both Britain and Norway pay higher manufacturing wage rates than the United States. D. None of the statements are false.
Which of the following is not an example of land?
A. Coal. B. A river. C. Natural gas. D. A homebuilder.