If U.S. demand for imports increases it would be expected that the value of the dollar in international currency markets would tend to
A. increase.
B. change in a manner that cannot be determined without additional information concerning the direction of the shifts in the demand for and supply of dollars.
C. decline.
D. remain unchanged.
C. decline.
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Suppose voter preferences over a public good funded through a proportional income tax are single peaked. If everyone has the same tastes and the public good is a normal good, then ideal points for higher income individuals will lie to the right of ideal points of lower income individuals.
Answer the following statement true (T) or false (F)
According to the graph shown, if the price were $5 a:
A. shortage would exist, signaling sellers to leave the market.
B. shortage would exist, signaling buyers to bid up the price.
C. surplus would exist, signaling sellers to drop their price.
D. surplus would exist, signaling buyers to bid up the price.
A lighthouse that serves a dangerous coastal area is built. The lighthouse cost $2 million to build and serves 100 ships a month. If the shipping in the area increases so that 300 ships pass by a month, the increase in additional costs of providing the light to these new ships is
A. $0. B. $5,000. C. $2 million. D. $100,000.
Which of the following is NOT an example of a good with an external cost?
A) electricity generation producing carbon dioxide emissions that contribute toward global warming B) logging that pollutes a nearby river C) Jess smoking near her non-smoking roommate D) Ahmed working at a bank and getting a flu shot each fall E) noise pollution from aircraft