If the U.S. interest rate, adjusted for people's expectation of inflation, increases sharply relative to the rest of the world, then
A) there will be a decrease in the demand for dollars in foreign exchange markets.
B) there will be no change in the demand for dollars in foreign exchange markets but there will be an increase in demand for foreign currency.
C) the dollar will appreciate.
D) the dollar will depreciate.
C
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There is a deadweight loss if a natural monopoly is regulated to use
A) marginal cost pricing and if it is regulated to use average cost pricing. B) average cost pricing and if it is allowed to be unregulated and maximize its profit. C) marginal cost pricing and if it is allowed to be unregulated and maximize its profit. D) None of the above answers is correct.
In the United States during the Great Depression, tariffs were ________ than they were following World War II, and ________ than they are today
A) higher; higher B) higher; lower C) lower; lower D) lower; higher
In the case of a permanent negative supply shock
A. both the long-run and short-run aggregate supply curves shift leftward. B. there are no shifts in either the long-run or short-run aggregate supply curve. C. only the long-run aggregate supply curve shifts leftward. D. only the short-run aggregate supply curve shifts leftward.
Suppose Adam Einberg pays $100 for a ticket to a new Broadway play and $100 was the maximum price he was willing to pay. On the day of the performance of the play Adam refuses to sell the ticket for $150. How would behavioral economists explain Adam's
refusal to sell his ticket? A) Adam's tastes had changed from the time he bought the ticket to the time of the performance of the play. B) When Adam bought the ticket he was being unrealistic about his future behavior. C) The endowment effect explains Adam's actions. People like Adam seem to value things that they have more than the things they do not have. D) Adam's income probably increased between the time he bought the ticket and the day of the play's performance.