In the market for euros, an increase in U.S. imports from Europe tends to
A. cause no change in equilibrium price.
B. increase equilibrium price.
C. decrease equilibrium price.
D. increase excess supply.
Answer: B
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At the current quantity of pizza, the marginal social benefit is greater than the marginal social cost. Then
A) the number of pizzas produced is efficient. B) more pizzas must be produced to reach the efficient level. C) fewer pizzas must be produced to reach the efficient level. D) revenue for pizza producers is maximized.
When Firm A increased its production last year, its average total cost of production decreased. On the other hand, Firm B also increased its production last year, but its average total cost of production increased. Considering the given situation, which of the following statements is true of the two firms?
a. The size of the plant in Firm A is smaller than the size of the plant in Firm B. b. Firm A is operating with increasing returns to scale, while Firm B is operating with decreasing returns to scale. c. Firm A is operating with decreasing returns to scale, while Firm B is operating with increasing returns to scale. d. Firm A invests more on labor and cheaper variable costs, while Firm B invests more in expensive machinery.
The multiplier becomes smaller as the economy moves farther away from full employment.
Answer the following statement true (T) or false (F)
Grace has just eaten a slice of pizza and says it gave her a utility of 8. If she chooses to eat a second slice:
A. she is not acting rationally. B. she will experience an increase in total utility. C. she will experience a drop in total utility. D. None of these is true.