Refer to Figure 19-5. The Chinese government pegs the yuan to the dollar, at one of the specified exchange rates on the graph, such that it overvalues its currency. Using the figure above, this would generate
A) a shortage of yuan equal to 500 million. B) a shortage of yuan equal to 100 million.
C) a surplus of yuan equal to 700 million. D) a surplus of yuan equal to 200 million.
D
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If the marginal cost curve is below the average variable cost curve
A. both average total cost and average variable cost are decreasing. B. average variable cost is less than average fixed cost. C. both average total cost and average variable cost are increasing. D. average total cost is increasing but average variable cost is decreasing.
The money the North Korean government spent to purchase a closed British brewery was a(n) ________ cost, and the choice to brew beer in this brewery instead of using the resources to feed the people of North Korea is a(n) ________ cost
A) explicit; explicit B) explicit; implicit C) implicit; implicit D) implicit; explicit
What are some of the potential obstacles that can lead to market failure by preventing a market from reaching the efficient outcome? Briefly define each obstacle
What will be an ideal response?
In the discussion of correlation and causation, correlation means: a. two sets of phenomena may be related, but one does not necessarily cause the other
b. two sets of phenomena are not related and one may in fact cause the other. c. that when two phenomena are repeatedly observed together, one must cause the other. d. that if a groundhog sees his shadow in February, this phenomena causes there to be six more weeks of bad weather.