To Americans buyers, there is a decrease in the relative prices of Japanese goods when the:
A. Yen appreciates
B. Dollar appreciates
C. Inflation rate in the United States is higher than the inflation rate in Japan, and there are flexible exchange rates
D. Inflation rate in Japan is higher than the inflation rate in the United States and there are fixed exchange rates
B. Dollar appreciates
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The American manufacturers of Pet milk unknowingly introduced their product in French-speaking markets without realizing that the word pet in French means "to break wind." Likewise, the English-speaking representative of a U.S. soft-drink manufacturer naively drew laughs from Mexican customers when she offered free samples of Fresca soda pop, because in Mexican slang the word fresca means "lesbian." These are examples of ________.
The unemployment rate generally ________ during recessions and generally ________ during expansions
A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increases E) increases; does not change
Thomas Edison once complained that he was not making a profit selling light bulbs because his plants were operating 25 percent below capacity. He estimated that he could increase output 25 percent with a 2 percent increase in the cost of production. He sold the 25 percent on the foreign market at a price below what he called the “cost of production.” We can deduce that Edison really meant
A. marginal cost was below average cost but less than marginal revenue. B. average cost exceeded variable cost, which exceeded marginal revenue. C. variable cost exceeded fixed cost but was less than marginal revenue. D. marginal cost was above average cost but greater than marginal revenue.
"If A occurs then B will follow" is a
A) positive statement. B) normative statement. C) non-testable statement. D) statement lacking in logic.