The United States can reduce its trade deficit by:
A. keeping the dollar fixed.
B. reducing the value of the dollar.
C. either weakening or strengthening the dollar.
D. strengthening the dollar.
Answer: B
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When private companies offer health insurance to their employees the insurance carrier they contract with typically requires that all employees be obligated to participate and pay premiums whether they wish to or not
What problem is the health insurance company trying to avoid? How does this policy mitigate this problem?
Figure 11-8
Given the average cost curve shown in Figure 11-8 for dry cleaning, where Q1 is the quantity demanded in a small town, and Q2 for a larger town, you would expect dry cleaning to be a monopoly
A. in a small town, but not a large one. B. in both large and small towns. C. in a large town, but not a small one. D. only if the process is patented.
A French worker can produce either 4 barrels of wine or 16 shirts a week; and Italian worker can produce either 10 barrels of wine or 20 shirts a week.
A. After the countries begin to trade, one barrel of wine will cost between four and eight shirts. B. France has an absolute advantage in both wine and shirts. C. France will export shirts and import wine. D. France has an absolute advantage in making shirts.
If a firm has reached the minimum efficient scale, any additional output produced by the firm will result in a lower average cost in the long run.
Answer the following statement true (T) or false (F)