How will the exchange rate (foreign currency per dollar) respond to a decrease in the relative rate of productivity growth in the United States in the long run?
A) Exchange rates will fall.
B) Exchange rates will be unaffected by changes in the relative rate of productivity growth in the United States, both in the short run and in the long run.
C) Exchange rates will rise.
D) The exchange rate will be affected in the short run, but not in the long run.
A
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What is the economic reasoning behind the proposal to legalize drugs?
A. Legal drugs will greatly increase the supply, which will reduce the price Americans pay to foreign producers of the drugs. B. All forms of government restrictions on behavior are immoral and ought to be removed. C. Legal drugs will be much cheaper than illegal drugs, which will reduce incentive for crime to obtain money for drugs and to protect drug “businesses.” D. Legal drugs will be more expensive than illegal drugs, and the market system will encourage more production, thus lowering the price. E. Dealing with supply is always easier than dealing with demand, and legalization accomplishes that.
In the above table, the average fixed cost of producing 15 units of output is
A) $0.50. B) $2.00. C) $6.66. D) $8.66.
Karl Marx's massive work, titled Das Kapital, was published in 1848
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. Inventory depletion can lead to increased production. 2. During the expansion phase of the business cycle, profit margins increase due to a widening cost-price relationship. 3. Population growth and wars are examples of external forces affecting the economy’s cyclical movements. 4. As the economy moves into the trough of the business cycle, there is a sizable reduction in the output of capital goods. 5. The roughly coincident indicators have their upward and downward turning points prior to the upward and downward turning points of real GDP.