Suppose that the exchange rate between the dollar and the peso changed from 6 pesos per dollar to 8 pesos per dollar. This change means that the
A) peso appreciated.
B) dollar depreciated.
C) peso depreciated.
D) Both answers A and B are correct.
C
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Lucinda starts a business consulting company. She makes all the business decisions and bears the risk of running the business. The typical payment for Lucinda's work is ________
A) all the revenue greater than her opportunity cost B) all the revenue greater than the capital investment C) a normal profit D) an economic profit
Suppose the U.S. GDP growth rate is slower relative to other countries' GDP growth rates. This will
A) move the economy up along a stationary aggregate demand curve. B) shift the aggregate demand curve to the left. C) shift the aggregate demand curve to the right. D) move the economy down along a stationary aggregate demand curve.
Countries do not in fact export the goods the H.O. theory predicts. Discuss
What will be an ideal response?
Suppose the utility function for a firm manager is U = ? + bQ, where Q is output, ? is profit, and b is a negative constant. How would the firm's output compare with what it would be if the manager's objective was to maximize profit?
A. It would be the same as the profit-maximizing output. B. It would be less than the profit-maximizing output. C. It would be greater than the profit-maximizing output. D. None of the statements is correct.