Currency traders expect the value of the dollar to fall. What effect will this have on the demand for dollars and the supply of dollars in the foreign exchange market?
A) Demand for dollars will decrease, and supply of dollars will decrease.
B) Demand for dollars will increase, and supply of dollars will decrease.
C) Demand for dollars will increase, and supply of dollars will increase.
D) Demand for dollars will decrease, and supply of dollars will increase.
D
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An individual paying twice as much in Social Security taxes over her lifetime as another individual would receive at least twice as much in Social Security benefits
a. True b. False
Which is an example of a negative externality?
A. The higher price you pay when you buy a heavily advertised product. B. An increase in the value of land you own when a nearby development is completed. C. The costs paid by a company to build an automated factory. D. Decreased property values in a neighborhood where several houses are burglarized.
The situation in the figure above creates a barrier to entry for a second firm because
i. a second firm that produced as many kilowatt-hours as the first firm would see the market price fall beneath its cost and would incur an economic loss. ii. a second firm that produced fewer kilowatt-hours than the first firm would have to charge a higher price and would not gain many customers. iii. the first firm's average total cost curve indicates it has been given a patent for the product. A) i only B) ii only C) iii only D) i and ii E) i and iii
In the above figure, what would be the wage paid and quantity of labor employed under competitive market conditions compared to monopsony conditions?
A) W1 and L1 with competition versus W2 and L2 with monopsony B) W2 and L2 with competition versus W1 and L1 with monopsony C) W2 and L2 with competition versus W3 and L1 with monopsony D) W3 and L3 with competition versus W3 and L1 with monopsony