As the number of British pounds that exchange for a dollar rises on foreign currency markets:
a. the British will have an incentive to import fewer U.S. goods
b. the British will find it easier to export goods to the United States.
c. the British will find U.S. goods to be more expensive in their stores.
d. all of the above will be true.
d
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Explain how the free-market mechanism adjusts prices so that resource allocation is economically efficient
Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-1, if the market price falls from $2.00 to $1.00, then:
A. total surplus increases. B. deadweight loss increases. C. overproduction decreases. D. underproduction decreases.
Which of the following policies toward kidnappings would you recommend to authorities?
A) State policy of NO negotiations. If a kidnapping occurs, authorities should negotiate. B) State policy of negotiations. If a kidnapping occurs, authorities should NOT negotiate. C) State policy of negotiations. If a kidnapping occurs, authorities should negotiate. D) none of the above
If sellers bear 1/3 of the tax burden and elasticity of demand is 2, what is the elasticity of supply?
A. 4 B. 3 C. 2 D. 1