A downward-sloping demand curve for Korean won in terms of Canadian dollars indicates that the higher the dollar price of Korean won, the more won will be demanded
a. True
b. False
Indicate whether the statement is true or false
False
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The quality of a product
A) is usually unknown to the seller and the buyer. B) leads to adverse selection. C) creates noise in a market. D) is a hidden characteristic.
Assume Japan must forego producing 60 computers for each automobile it produces. Moreover, the United States can produce one automobile if it forgoes producing 80 computers. Which of the following is true?
a. The United States has a lower opportunity cost of producing automobiles. b. The United States has a comparative advantage in producing automobiles. c. Japan has a comparative advantage in producing computers. d. No trade will occur between Japan and the United States. e. Japan has a lower opportunity cost of producing automobiles.
Suppose that a firm in monopolistically competitive market is producing 30 units of output. At this level of production, the firm charges $50 per unit. Its marginal cost is $24 and marginal revenue is $24, and average cost is $20 per unit. Given this information, in the long run you would expect
A. firms to exit the market. B. price to increase. C. firms to enter the market. D. firms to maintain their current output and price.
According to the real business cycle theory, business cycle contractions are generally caused by
A) the self-interest of politicians. B) decreases in business investment. C) decreases in the growth rate of the money supply. D) decreases in the economy's capacity to produce. E) all of the above