Under a system of freely floating exchange rates, an increase in the international value of a nation's currency will:
A. cause an international surplus of its currency.
B. contribute to disequilibrium in its balance of payments.
C. cause gold to flow into that country.
D. cause its imports to rise.
D. cause its imports to rise.
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Governments can most effectively encourage a firm to produce the efficient level of output of a good whose production causes a beneficial externality by
a. increasing the demand at every price for the good. b. subsidizing the production of the good. c. taxing the production of the good. d. imposing a price ceiling on the good.
Consumer surplus measures the value between the price consumers are willing to pay and the:
A. producer surplus price. B. deadweight gain price. C. actual price paid. D. preference price.
Which of the following is NOT included in the calculation of Gross Domestic Product (GDP)?
A. Mr. J's purchase of a share of General Motors stock B. the purchase of a raincoat by Mr. Z C. Mrs. T's use of a lawyer D. All of these would be included.
In the production of cell phones, Apple and Samsung are ________, so there is ________ on economic profits to go to zero.
A. oligopolists; pressure B. perfect competitors; pressure C. monopolists; no pressure D. oligopolists; no pressure