For this question, assume the Marshal-Lerner condition holds. Which of the following would occur as a result of an increase in the real exchange rate?
A) an improvement of the trade balance
B) a reduction in the quantity of imports
C) an increase in domestic output
D) all of the above
E) none of the above
E
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Which one of the following statements is TRUE for Norway, a non-euro country?
A) Of course, owners of capital that cannot be moved cannot avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows. B) Even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows. C) Owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows. D) Even owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows. E) Only owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows.
If utility is not maximized, then:
a. some change in consumption will increase satisfaction. b. no change in consumption will increase utility. c. only a change in income will increase utility. d. only a change in price will increase utility. e. the principle of diminishing marginal utility does not hold.
Which of the following is not generally true about a profit-maximizing monopolist? a. The monopolist faces a perfectly elastic demand curve
b. The monopolist can potentially continue to earn economic profits in the long run. c. The monopolist charges a price that exceeds marginal cost. d. The monopolist chooses output where marginal revenue equals marginal cost.
Contrary to most thinking, governments play ____ in causing pollution
a. almost no role b. a large but decreasing role c. a major role d. a reconstructive role