Other things the same, an increase in foreign prices raises the real exchange rate
a. True
b. False
Indicate whether the statement is true or false
False
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Who receives benefits if regulation works according to social interest theory?
A) the entire economy B) cohesive interest groups C) everyone not in the cohesive interest group D) the regulators E) It is impossible to determine who benefits.
Economic theory asserts that:
a. both implicit costs and explicit costs are relevant in decision making. b. only implicit costs are relevant in decision making. c. only explicit costs are relevant in decision making. d. a cost to be incurred in the future should count more heavily than a cost incurred today
Which of the following is a normative economic statement?
A) Rising global demand for diesel and heating oil has led to increases in the price of crude oil. B) With falling home prices and rising mortgage interest rates, the amount of foreclosures has increased. C) The federal government is considering raising the gasoline tax to promote the use of public transportation. D) Fashion designers should be allowed to copyright designs to promote innovation.
If the utility for two goods "x" and "y" is measured as U = x + y, then it can be concluded that
A) "x" and "y" are perfect substitutes. B) "x" and "y" are perfect complements. C) "x" and "y" are both bads. D) the indifference curves on the x,y graph will be upward sloping.