Given expectations of future exchange rates, when foreign returns are greater than domestic returns, investors will ___domestic assets, ___domestic currency, ___ foreign currency, and ___ foreign assets.
a. sell; sell; buy; buy
b. sell; buy; sell; buy
c. buy; sell; buy; sell
d. buy; buy; sell; sell
Ans: a. sell; sell; buy; buy
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If both prices decreases by 50%,
A) budget constraint will be unchanged. B) slope of the budget constraint will increase. C) slope of the budget constraint will decrease. D) budget constraint will shift outward in a parallel fashion.
Retaliation of trade restrictions can:
What will be an ideal response?
Fixed cost is:
A. any cost that does not change when the firm changes its output. B. usually zero in the short run. C. the cost of producing one more unit of capital, say, machinery. D. average cost multiplied by the firm's output.
In the long run, a profit-maximizing monopolistically competitive firm sets it price:
A. above marginal cost. B. below marginal cost. C. equal to marginal revenue. D. equal to marginal cost.