An increase in the foreign real interest rate will tend to cause, other things the same ________
A) individuals to hold fewer dollar assets
B) an increase in the return on dollar assets relative to foreign assets
C) an appreciation in the value of the U.S. dollar
D) an increase in the demand for dollars
A
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If the wages of loggers went up, the supply of logs would:
a. fall, thereby shifting to the right. b. fall, thereby shifting to the left. c. rise, thereby shifting to the right. d. rise, thereby shifting to the left.
The industry for personal care products in Richland is monopolistically competitive in nature. The firms in this industry earn positive economic profits in the short run
Do the firms continue to earn positive profits in the long run? Explain your answer.
Refer to Figure 4-2. What area represents producer surplus at a price of P2?
A) A + B B) B + D C) A + B + C + D + E D) A + B + C
________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium
A) Producer atrophy B) Deadweight loss C) Economic shortage D) Marginal cost