What are the three main sets of factors that cause the supply and demand curves in the foreign exchange market to shift?
What will be an ideal response?
The three main sets of factors are changes in the demand for U.S.-produced goods and services and changes in the demand for foreign-produced goods and services; changes in the desire to invest in the United States and changes in the desire to invest in foreign countries; and changes in the expectations of currency traders about the likely future value of the dollar and the likely future value of foreign currencies.
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Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, consumer surplus equals area(s)
A. A + B + C + D. B. A + D. C. A. D. A + B + C.
In a perfectly competitive market, the type of decision a firm has to make is different in the short run than in the long run. Which of the following is an example of a perfectly competitive firm's short-run decision?
A) the profit-maximizing level of output B) how much to spend on advertising and sales promotion C) what price to charge buyers for the product D) whether or not to enter or exit an industry E) whether or not to change its plant size
What do economists mean when they say that capital can labor can be both complementary inputs and substitutes
What will be an ideal response?
Economic discrimination exists when
A) there is an unequal distribution of income in a country. B) both income and wealth are unequally distributed in a country. C) there is unequal access to education. D) workers with the same marginal revenue products are paid different wages.