The term "flexible exchange rates" refers to
A) a situation in which exchange rates are allowed to fluctuate in the open market in response to changes in supply and demand.
B) the increase in the exchange value of one nation's currency in terms of an other nation.
C) a nation in which households, firms, and governments buy and sell national currencies.
D) the decrease in the exchange value of one nation's currency in terms of another nation.
Answer: A
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A regulated natural monopoly is allowed to set a price which will enable it to earn an above-normal profit
a. True b. False Indicate whether the statement is true or false
The marginal revenue product curve of a factor is negatively sloped because:
a. the additional revenue generated from an additional unit of a factor remains constant as more resources are hired. b. the additional revenue generated from an additional unit of a factor declines as more resources are hired. c. the additional revenue generated from an additional unit of a factor usually becomes zero as more resources are hired. d. the additional revenue generated from an additional unit of a factor increases as more resources are hired. e. the additional revenue generated from an additional unit of a factor doubles every time new resources are hired.
Unlike economic profit, economic rent:
A. may not be driven to zero by competition. B. doesn't involve opportunity costs. C. can be less than zero. D. only applies to land.
If the domestic consumers of a good benefit from free trade, it suggests that the country:
A. is a net importer of that good. B. is not able to produce that good. C. is a net exporter of that good. D. has a comparative advantage in that good.