If the dollar rose by 35% relative to other currencies, our current account deficit would
A. rise sharply.
B. rise slightly.
C. not be affected.
D. fall slightly.
A. rise sharply.
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You own a 2007 Ford Explorer. Although it has high mileage, you have maintained it very well
You want to sell it, but after checking the prices other owners of 2007 Ford Explorers are able to get for their cars in the used car market, you decide the prices are too low and you decide not to sell. This is an example of A) the "lemons problem." B) moral hazard. C) economies of scale. D) low information costs.
In the long run in perfect competition, no firm can earn a normal profit
a. True b. False
Suppose a radar-activated braking system that can help prevent crashes is an option on a new car. It costs $600 and reduces the chance of dying in an auto accident by 1/700. The implicit value placed on life by a person who does not have the system installed is therefore:
A. exactly $600. B. at least $420,000. C. at least $432,000. D. less than $420,000.
The elasticity of supply for a product will be 2 if:
A. A 1 percent decrease in the price causes a 0.2 percent decrease in quantity supplied B. A 2 percent decrease in price causes a 1 percent decrease in quantity supplied C. A 1 percent decrease in price causes a 2 percent decrease in quantity supplied D. A 2 percent decrease in price causes a 2 percent decrease in quantity supplied