Other things the same, if the price level rises, people
a. increase foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange increases.
b. increase foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange decreases.
c. decrease foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange increases.
d. decrease foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange decreases.
d
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Define the following terms. Give a complete and precise definition in one sentence. a. total utility b. marginal utility c. consumer’s surplus d. “law” of demand
What will be an ideal response?
Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln. Which of the following events would cause the price differences in these letters to get smaller?
A) The demand for Lincoln letters decreases and the demand for Booth letters increases. B) The demand for Booth letters increases. C) The demand for Lincoln letters increases and the supply of Booth letters increases. D) The supply of Lincoln letters increases.
In recent decades labor markets in European countries like Italy and Spain have been
A) less regulated and the unemployment rates of the European countries have been higher than the United States. B) more highly regulated and the unemployment rates of the European countries have been lower than the United States. C) more highly regulated and the unemployment rates of the European countries have been higher than the United States. D) less regulated and the unemployment rates of the European countries have been lower than
Suppose Erie Textiles can dispose of its waste "for free" by dumping it into a nearby river. While the firm benefits from dumping waste into the river, the waste reduces fish and bird reproduction. This causes damage to local fishermen and bird watchers. At a cost, Erie Textiles can filter out the toxins, in which case local fishermen and bird watchers will not suffer any damage. The relevant gains and losses (in thousands of dollars) for the three parties are listed below. WithFilterWithoutFilterGains to Erie$200$400Fisherman$180$50Bird Watchers$130$25Suppose you observe that Erie has not added a filter. You could conclude that the Coase theorem failed to solve the externality problem because:
A. regulators prevent application of the Coase theorem when the environment is at stake. B. negotiation with many individual fishermen and bird watchers was too costly. C. Erie's benefits to operating without a filter are greater than the benefits of a filter to the fishermen and bird watchers. D. Erie has a property right to the river.