Monopolistically competitive firms advertise to attempt to
A) lower their average variable costs.
B) build brand loyalty.
C) lower barriers to entry.
D) increase barriers to entry.
B
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If national income increases by $75 million and consumption increases by $15 million, the marginal propensity to consume is
A) 5. B) 0.75. C) 0.20. D) 0.15.
Suppose we were analyzing the pound per Swiss franc foreign exchange market. If Switzerland's price level rise relative to England and nothing else changes, then the: a. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing an appreciation of the Swiss franc
b. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market rises, causing an uncertain change in the value of the Swiss franc. c. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing a depreciation of the Swiss franc. d. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market rises, causing an appreciation of the Swiss franc. e. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.
Libertarians believe that
a. the government should choose just policies as evaluated by an impartial observer behind a "veil of ignorance.". b. the government should aim to maximize the well-being of the worst-off person in society. c. everyone in society should have equal utility. d. the government should not redistribute income.
Workers displaced because of trade:
a. have had larger losses in manufacturing compared with services. b. have had larger losses among older workers than younger workers. c. are likely to find replacement jobs within 3 years. d. have experienced all of these answer choices.