Suppose the dollar depreciates from 89 Japanese yen to 79 Japanese yen. One would expect
A. U.S. imports to increase
B. U.S. exports to increase.
C. Japanese exports to increase.
D. Japanese net exports to increase.
Answer: B
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If the MC of polluting decreased, then what would happen to the optimal level of pollution?
A. Stay the same B. Unsure C. Increase D. Decrease
If skilled and unskilled labor are substitutes, then an increased minimum wage would tend to
A) reduce the demand for both unskilled and skilled workers. B) reduce the quantity demanded of unskilled workers and increase the demand for skilled workers. C) reduce the demand for unskilled workers and increase the quantity demanded of unskilled workers. D) reduce the quantity demanded for both unskilled and skilled workers.
Which of the following would not shift the demand curve for pork?
a. an increase in the price of beef b. an increase in the price of pork c. an increase in the incomes of pork consumers d. a widespread advertising campaign for pork e. a finding that consumption of beef increases the risk of heart attack
Consider a consumer who purchases two goods, X and Y. If the price of good Y falls, then the substitution effect by itself will
a. cause the consumer to buy more of good Y and less of good X. b. cause the consumer to buy more of good X and less of good Y. c. not affect the amount of goods X and Y that the consumer buys. d. result in an upward-sloping demand for good Y if the substitution effect is positive.