A stronger dollar leads to lower input prices for U.S. firms because
A) U.S. workers are willing to work for less pay because of the stronger dollar.
B) U.S. producers of intermediate goods lower prices in order to benefit from the stronger dollar.
C) both exports of raw materials and intermediate goods are lower in prices.
D) both imports of raw materials and intermediate goods are lower in prices.
D
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Deflation occurs when
A) there is a sustained increase in the price level. B) there is a one-time increase in the price level. C) there is a decrease in the expected rate of inflation. D) there is a decline in the price level.
Marginal costs rise if there are increasing returns
Indicate whether the statement is true or false
If the short run elasticity of demand for widgets is 1.1 and the long run elasticity of demand for widgets is 3.6, a decrease in price will ____ total revenue in the short run and ____ total revenue in the long run. a. Increase; increase
b. Increase; decrease. c. Decrease; increase. d. Decrease; decrease.
Foreign aid:
A. provided by developed countries to developing countries represents about 10 percent of the GDP of developed countries. B. is an important source of funding for investment in most developing countries. C. does not contribute much to domestic investment in most developing countries. D. is largely wasted in most developing countries because it comes with no strings attached.