As a currency depreciates:
A) exports increase and imports decrease.
B) exports decrease and imports increase.
C) exports increase and imports increase.
D) exports decrease and imports decrease.
Ans: A) exports increase and imports decrease.
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If an industry is a natural monopoly and regulators decide that the firm must price at marginal cost, then consumers will be ________ off than if the firm was unregulated and the firm's owners will be ________ off than if it was unregulated
A) better; better B) better; worse C) worse; better D) worse; worse
With respect to unemployment, the classical model states that
A. involuntary unemployment will always exceed voluntary unemployment. B. unemployment fluctuates with the interest rate. C. only voluntary unemployment exists. D. unemployment of any kind cannot exist.
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
The purchase of an airplane produced in the United States by the government of Thailand is included in
A) U.S. imports. B) U.S. government purchases. C) U.S. exports. D) Thailand government exports.