A higher exchange rate for the U.S. dollar means that
A) the U.S. dollar trades for less foreign currency.
B ) the U.S. dollar trades for more foreign currency.
C) foreign currency has risen in value relative to the dollar
D) the U.S. dollar has fallen in value relative to the foreign currency.
Ans: B ) the U.S. dollar trades for more foreign currency.
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In the short run, how will a profit-maximizing monopolist react if its marginal cost suddenly increases? It will
a. lower price to expand revenue possibilities b. restrict output to extract a higher price from customers c. maintain the current price if profit is still positive d. increase plant size to lower marginal cost e. decrease plant size to lower marginal cost
Firms who are attempting to engage in price discrimination will offer customers with a ________ demand a higher price and customers with a(n) ________ demand a lower price.
A. lower; higher B. normal; inferior C. less elastic; more elastic D. more elastic; less elastic
Recall the Application about the economics professor who caught three students cheating on their final exam to answer the following question(s).Recall the Application. After being caught cheating, the economics professor called each student into his office individually. Each student was given two options: 1. If the student confessed, he or she would receive a zero on the final exam but suffer no other consequences. 2. If the student did not confess, he or she would go before the Office of Student Judicial Affairs, and any confessions by the other two students would be used as evidence. Based on the prisoners' dilemma, how many of the three students would be expected not to confess?
A. 0 B. 1 C. 2 D. 3
An increase in wealth will usually cause an individual to ________ his supply of labor.
A. not change B. increase C. decrease D. reduce to zero