Under a floating exchange-rate system, an increase in the international demand for electronic appliances manufactured in Japan will result in
A. a reduction of international reserves held by the central bank of Japan.
B. an appreciation of the yen vis-à-vis other currencies.
C. deflation in the Japanese economy.
D. an increase in Japan's trade deficit with other countries.
Answer: B
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The marginal revenue curve of a competitive firm is
a. U-shaped. b. a ray from the origin. c. a horizontal line at the market price. d. downward sloping.
The more elastic the supply of a product, the more likely it is that the
a. burden of a tax on the product will fall on sellers. b. burden of a tax on the product will fall on buyers. c. burden of a tax on the product will fall equally on both buyers and sellers. d. deadweight loss of the tax will be smaller.
A firm will use more and more labor until the marginal revenue product of labor
A. rises to the level of the wage rate. B. falls to the level of the wage rate. C. rises above the wage rate. D. falls below the wage rate.
If your guest is serious when he said that he just could not get enough of the lasagna you cooked and that the more he ate the more he wanted, you would conclude that the marginal utility of lasagna for him was
A) positive. B) negative. C) zero. D) undefined.