In the market for euros, a decrease in the relative safety of U.S. investments tends to
A. increase excess supply.
B. decrease equilibrium price.
C. increase equilibrium price.
D. cause no change in equilibrium price.
Answer: C
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If Toni has an absolute advantage in both sewing and ironing when compared to Tom, then
A) they might benefit from trading, but we need more information to determine in which task they should specialize. B) neither Toni nor Tom can benefit from trading with each other. C) Toni should specialize in sewing, and Tom should specialize in ironing. D) Toni cannot benefit from trading with Tom, but Tom can benefit from trading with Toni. E) Tom cannot benefit from trading with Toni, but Toni can benefit from trading with Tom.
A resource price taker's resource demand curve is
a. horizontal b. the same as its marginal resource cost curve c. the same as its marginal revenue product curve d. the same as its marginal product curve e. the same as its average variable cost curve
In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
a. inventory is depleted. b. inventory is accumulated. c. inventory is unchanged. d. employment decreases.
Refer to the accompanying figure. Assume the market is originally at point W. Movement to point Z is a combination of:
A. an increase in supply and an increase in quantity demanded. B. a decrease in supply and an increase in quantity demanded. C. an increase in demand and an increase in quantity supplied. D. an increase in supply and an increase in demand.