To answer, refer to the following: "Ford built 18 vehicles per auto employee in North America last year, while GM could only manage 12." (The Wall Street Journal) In comparison with GM, Ford had
A. higher total variable cost.
B. higher average variable cost.
C. lower average variable cost.
D. both a and c
E. none of the above
Answer: C
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When the nominal exchange rate in terms of dollars per yen rises
A) the dollar buys more yen and the dollar has depreciated. B) the dollar buys fewer yen and the dollar has depreciated. C) the dollar buys more yen and the dollar has appreciated. D) the dollar buys fewer yen and the dollar has appreciated.
Refer to the graph below which shows the import demand and export supply curves for two nations that produce a certain product. Lines 6 and 8 apply to one nation and represent, respectively:
A. Import demand and export supply
B. Export supply and import demand
C. Domestic supply and domestic demand
D. Domestic demand and domestic supply
Which of the following people is most likely to be structurally unemployed?
a. Brendan left his job as a short-order cook in New Jersey to become a short-order cook in Madrid, New Mexico. He was unemployed for six weeks during the transition. b. Mildred quit her job after giving birth to a child. c. Clem, a skilled corset maker, lost his job when his factory shut down due to a permanent reduction in the demand for corsets. d. Danielle lost her job when the electronics assembly plant was shut down temporarily due to low product sales in a slumping economy.
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
According to the matrix shown, the outcome of the "game" will be:
A. both firms will collude and act like a joint monopolist. B. Firm B will compete and Firm A will collude. C. Firm A will compete and Firm B will collude. D. both firms will compete.