An export subsidy can be good for a country if
A. the international market for the export product is highly competitive.
B. the subsidy is offset by a countervailing duty.
C. the subsidy decreases the export price so the export quantity increases.
D. the subsidy allows the country's only exporting firm to capture the entire world market.
Answer: D
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Suppose the exchange rate of the U.S. dollar was 1.50 British pounds = $1.00 (U.S.) on Wednesday, and on the following Monday the exchange rate was $0.75 (U.S.) = 1.00 British pound
Which of the following best describes what happened between Wednesday and the following Monday? A) The U.S. dollar appreciated against the British pound. B) The British pound appreciated against the U.S. dollar. C) The U.S. dollar depreciated against the British pound. D) Both answers B and C are correct.
Identify factors that would cause consumption spending to increase. What effect would that have on aggregate demand?
A perfectly competitive firm will maximize profits by choosing an output level where
A. Price equals total cost. B. Price is greater than total cost. C. Price equals marginal cost. D. Price is greater than marginal cost.
There are 100 dog kennels in Atlanta. An economist studying the pricing behavior of dog kennels tells you that she is limiting her analysis to a time period that does not allow for any new dog kennels to enter the industry or for any established dog kennels to leave the industry. The time period this economist referred to is the
A. short run. B. market period. C. long run. D. industry run.