The import demand curve determines the ________ in the same way that the export supply curve determines the ________
A) supply of foreign exchange; demand for foreign exchange
B) supply of domestic currency; demand for domestic currency
C) demand of foreign exchange; supply for foreign exchange
D) demand of domestic currency; supply for domestic currency
A
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Can the U.S. dollar and the euro both appreciate relative to each other? a. Yes, both countries can gain in this manner
b. Yes, provided the central banks agree to permit it. c. No, if one currency appreciates relative to another, the other depreciates. d. No, the citizens of the countries would not agree to it.
In an oligopoly market, the firms would earn the highest profit if they
A. chose to produce an output equal to the perfectly competitive output level. B. chose to produce the output equal to the monopoly output level. C. chose to ignore the implications of game theory. D. chose to ignore the actions of rival firms.
If price was set by the government at $11, there would be a price __________, that would cause a ___________ of ______ units.
A. floor; surplus; 8
B. floor; surplus; 10
C. floor; shortage; 8
D. ceiling; shortage; 12
Aluminum Aces dumps wastewater into a creek they have owned for decades. The new neighbor, Ms. Franklin, has tried to grow bamboo along the creek where it enters her property, but the wastewater kills about $1,000 worth of her bamboo each year. She offers Aluminum Aces $600 per year to add a new filter, which costs $400, to their system so wastewater will no longer kill her bamboo. Which of the following is true of this situation and necessary for it to fit the Coase theorem?
a. Neither party is worse off than before. b. Property rights are not defined. c. A positive externality is internalized. d. Transaction costs are high.