A decrease in U.S. prices relative to European prices
A) will decrease European exports to the United States.
B) will increase U.S. imports from Europe.
C) will decrease U.S. exports to Europe.
D) will not affect U.S. trade with Europe.
A
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Consider the following statement: "If the government attempts to raise employment through increased fiscal spending, all it will end up doing is increasing the price level." The statement rests on the assumption that:
a. the aggregate demand curve is a horizontal line. b. the aggregate supply curve is a vertical line. c. the aggregate supply curve is upward-sloping. d. the aggregate supply curve is downward-sloping. e. the aggregate supply curve is a horizontal line.
Harun earned $50,000 in salary and paid $10,000 in federal taxes. If he receives $2,000 in interest payments from municipal bonds,
A. his marginal tax rate will be about 19.2 percent. B. his average tax rate will fall. C. his marginal tax rate will remain constant. D. his marginal tax rate will be 20 percent.
Refer to the graph shown of a monopolistically competitive firm. You can conclude that:
A. existing firms will exit the industry in the long run. B. new firms will enter the industry in the long run. C. the price of dresses is equal to the minimum possible average total cost. D. the industry is in long-run equilibrium.
A sunk cost is
A) another term that means opportunity cost. B) a term used to describe the cost of capital that the owners of a firm sink into their business. C) the highest valued alternative that must be given up to engage in an activity. D) a cost that has already been paid and cannot be recovered.