If the dollar appreciates relative to other currencies, which of the following is true?
A. It takes more foreign currency to buy a dollar.
B. It takes more dollars to buy a foreign currency.
C. U.S. exports will increase.
D. Foreign purchases of U.S. goods will increase.
Answer: A
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If a good is imported into (large) country H from country F, then the imposition of a tariff in country H
A) raises the price of the good in both countries (the "Law of One Price"). B) raises the price in country H and cannot affect its price in country F. C) lowers the price of the good in both countries. D) lowers the price of the good in H and could raise it in F. E) raises the price of the good in H and lowers it in F.
During a recession we will most likely see which of the following?
a. Real GDP decrease, Inflation increase, unemployment increase b. Real GDP decrease, inflation decrease, unemployment increase c. Real GDP increase, inflation increase, unemployment decrease d. Real GDP increase, inflation increase, unemployment increase
Holding other factors constant, if oil prices rise relative to the prices of other products, then the real wages of oil workers will ________ and employment of oil workers will ________.
A. increase; increase B. decrease; not change C. increase; decrease D. decrease; increase
A value of the absolute price elasticity of demand equal to 0.6 indicates that
A) a 6 percent increase in price leads to a 10 percent decrease in quantity demanded. B) a 10 percent increase in price leads to a 6 percent decrease in quantity demanded. C) a 0.6 percent increase in price leads to a 1 percent decrease in quantity demanded. D) a 1 percent increase in price leads to a 6 percent decrease in quantity demanded.