If the price of good X goes up and the price of good Y goes down, then it is possible for
a. The person is better off than before.
b. The person is worse off than before.
c. The person is no better or worse off than before.
d. All of the above are possible.
d. All of the above are possible.
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A currency depreciation in the foreign exchange market will ________.
A. encourage foreign travel by the citizens of the country whose currency has depreciated B. discourage exports from the country whose currency has depreciated C. discourage imports into the country whose currency has depreciated D. encourage imports into the country whose currency has depreciated
For a closed economy with no government, we know that at every level of GDP actual investment equals
A) the difference between planned investment and actual saving. B) the difference between planned saving and actual saving. C) planned investment. D) planned saving.
If labor is measured along the horizontal axis and capital is measured along the vertical axis, an increase in the wage rate will cause the isocost line to:
A. rotate clockwise, causing the firm to use less labor and more capital. B. rotate counterclockwise, causing the firm to use less labor and more capital. C. rotate clockwise, causing the firm to use less capital and more labor. D. rotate counterclockwise, causing the firm to use less capital and more labor.
The opportunity cost of an action is:
A. the monetary payment the action required. B. the total time spent by all parties in carrying out the action. C. the value of the best opportunity that must be sacrificed in order to take the action. D. the cost of all alternative actions that could have been taken, added together.