Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?
A. An increase in the present value of expected future profits.
B. A decrease in extraction costs.
C. A decrease in user costs.
D. An increase in the current price of the resource.
Answer: A
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If a 1 percent decrease in the price of a pound of oranges results in a smaller percentage decrease in the quantity supplied
A) demand is elastic. B) demand is inelastic. C) supply is elastic. D) supply is inelastic.
Which of the following is NOT a function of the International Monetary Fund?
A) serve as lender of last resort for national governments B) administer an international foreign exchange system C) establish the SDR system nations utilize to settle international payment obligations D) establish and administer each nation's fiscal and monetary policies
Refer to the above table. It may be concluded that
A) Mexico has a comparative advantage in computer production. B) Mexico has a comparative advantage in bicycle production. C) The United States has a comparative advantage in producing both goods. D) The United States has a comparative advantage in producing neither good.
If real incomes in foreign nations were growing less rapidly than U.S. real incomes, one would expect that as a result, a. the exchange value of the dollar would decline relative to other currencies
b. the exchange value of the dollar would increase relative to other currencies. c. there would likely be no effect on the exchange value of the dollar relative to other currencies. d. there would be an indeterminate effect on the exchange value of the dollar relative to other currencies.