Higher real interest rates in the United States (relative to foreign real interest rates) will lead to a(n) _____________________ of the dollar, a ____________ shift of the U.S. AD curve and a _________________ shift of the U.S. SRAS curve
A) appreciation; rightward; leftward
B) appreciation; leftward; rightward
C) depreciation ; rightward; leftward
D) depreciation; leftward; rightward
E) appreciation; rightward; rightward
B
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African governments wish to reduce the poaching of elephants, which is done to harvest the elephant’s ivory from its tusks. If this is the goal, economists would suggest that
A. a price ceiling for ivory should be set, to reduce the price in the market, which would discourage poaching. B. governments continue to stockpile confiscated ivory, to keep it out of the market. C. burning ivory reduces the supply, which would reduce the number of buyers. D. confiscated tusks should be sold by governments because this would lower the price of ivory and reduce the reward to poachers.
If an industry is characterized by substantial diseconomies of scale, as a particular firm in the industry expands its production capacity we will observe:
A) a decrease in marginal costs. B) an increase in the marginal product of labor. C) a decrease in the total fixed costs of production. D) an increase in the average total costs of production.
Government enforced property rights are crucial to economic growth because they
What will be an ideal response?
Graphically, the presence of an external cost that is ignored by producers can be shown as
A) a market supply curve to the left of the market supply curve for where the producers have to pay for the external cost. B) a market supply curve to the right of the market supply curve for which the producers have to pay for the external cost. C) a market supply curve the same as the market supply curve for which the producers have to pay for the external cost. D) the absence of a market supply curve.