What usually results when interest rates continue to increase?
A. Spending decreases.
B. Production increases.
C. Purchasing power increases.
D. Unemployment decreases.
A. Spending decreases.
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If the exchange rate changes from 20 cents per franc to 18 cents per franc, the U.S. dollar has
a. appreciated, since its value has increased b. appreciated, since its value has declined c. depreciated, making French goods more expensive in U.S. dollars d. depreciated, since its value has declined e. depreciated, since its value has increased
U.S. goods will become relatively less expensive than goods from other countries if prices were to:
A. increase in the United States only. B. decrease in the United States only. C. increase in the United States and foreign countries at the same rate. D. decrease in the United States and foreign countries at the same rate.
With respect to environmental issues, the GATT:
a. does not allow countries to adopt environmental laws that affect imports. b. allows countries to adopt environmental laws that affect domestic production but not imports. c. allows countries to adopt environmental laws that are applied uniformly against domestic producers and imports. d. allows countries to adopt more stringent laws affecting imports than domestic producers.
Which of the following statements is false?
A. If economic profit is negative, accounting profit must also be negative. B. Explicit costs of using market-supplied resources entail an opportunity cost equal to the dollar cost of obtaining the resources in the market. C. If economic profit is positive, accounting profit must also be positive. D. When economic profit is zero, the firm's owners could not have done better putting their resources in some other industry of comparable risk. E. None of the above statements is false.