In a system of perfectly flexible exchange rates, an expansionary U.S. monetary policy will cause
a. a rise in the value of the dollar relative to foreign currencies.
b. a fall in the value of the dollar relative to foreign currencies.
c. no change in the value of the dollar relative to foreign currencies.
d. a change in the value of the dollar relative to foreign currencies but the direction of the change is uncertain.
B
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Exhibit 30-3 Costs of Eliminating:Firm A Firm B Firm C 1st ton of pollution$ 30 $ 50 $ 600 2nd ton of pollution$ 70 $ 90 $ 700 3rd ton of pollution$125 $150 $ 900 4th ton of pollution$200 $250 $1,300 Refer to Exhibit 30-3. Suppose that Firms A, B, and C are the only polluters in the state and that each emits 4 tons of pollution into the atmosphere. To cut the level of pollution the government imposes an emission tax of $300 per ton of pollution. As a result of this tax, Firm A would _________________, firm B would ____________________ and firm C would __________________.
A. not reduce any of its pollution; not reduce any of its pollution; reduce all 4 tons of its pollution B. reduce all 4 tons of its pollution; only reduce 1 ton of its pollution; not reduce any of its pollution C. reduce all 4 tons of its pollution; reduce all 4 tons of its pollution; not reduce any of its pollution D. not reduce any of its pollution; reduce 3 tons of its pollution; reduce all 4 tons of its pollution
The largest labor union in the United States represents approximately
A. 5 percent of the labor force. B. 1 percent of the labor force. C. 10 percent of the labor force. D. 15 percent of the labor force.
Which of the following offers the most likely explanation of why average total cost is falling in a cereal factory?
a. Production bottlenecks and equipment breakdowns have stalled production. b. The production facility was designed for a lower level of output. c. The wholesale prices of grains and fruit have risen due to market demands. d. The cost of producing an additional box of cereal is less than the factory’s average total cost.
The amount of a particular good that sellers in a market will sell at a given price during a specified period is called:
A. quantity supplied. B. demand. C. supply. D. quantity demanded.