If you exchanged $1,000 for 90,000 yen at your local bank in preparation for an upcoming trip to Tokyo, and notice after your arrival that the current exchange rate is 100 yen per dollar, how will the value of the yen you brought to Tokyo change relative to the dollar?
a) The value of the yen fell in value relative to the dollar.
b) The value of the yen rose in value relative to the dollar.
c) The value of the yen stayed the same relative to the dollar.
d) There is not enough information to answer this question.
Ans: a) The value of the yen fell in value relative to the dollar.
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When the price of a product decreases, the marginal revenue product curve in a perfectly competitive market
A) does not change. B) becomes flatter. C) shifts to the right. D) shifts to the left.
John is trying to decide whether to expand his business or not. If he continues his business as it is, with no expansion, there is a 50 percent chance he will earn $100,000 and a 50 percent chance he will earn $300,000. If he does expand, there is a 30 percent chance he will earn $100,000, a 30 percent chance he will earn $300,000 and a 40 percent chance he will earn $500,000. It will cost him $150,000 to expand. John should:
A. expand, since he expects to earn $320,000 by expanding, and it will only cost him $150,000 to do so. B. not expand, because there is a chance John will earn the same as if he didn't expand and would be out the $150,000 investment. C. not expand, since he expects to earn $120,000 more by expanding than not, and it will cost him $150,000 to do so. D. expand, since he has a 70 percent chance of earning more than the cost of expansion.
The U.S. economy has never experienced deflation
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, an increase in unemployment may be represented by the movement from
A. B to A. B. A to C. C. C to D. D. B to D.