If the Japanese price level falls relative to the price level in the United States, then:
a. Japanese buy less U.S. exports.
b. the demand for dollars decreases.
c. the supply of dollars increases.
d. the value of the dollar falls.
e. all of these are true.
e
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An American tourist in the Netherlands buys tulips from a local producer. This is an example of a(n) ________ by the tourist
A) transfer payment B) import C) export D) foreign direct investment
According to Okun's Law, if the natural unemployment rate is 5 percent, the actual unemployment rate is 4 percent, and potential GDP is $15 trillion, then actual real GDP is
A) $14.7 trillion. B) $15.4 trillion. C) $15.0 trillion. D) $12.0 trillion. E) $15.3 trillion.
The table above shows the marginal private benefit, marginal social benefit, and marginal cost of education at the College of Epsilon. What is the efficient number of students at the college?
A) 1,000 B) 3,000 C) 4,000 D) 5,000
What is known as the Dutch disease?
a. The problem that arises when a government cannot meet its foreign debts b. The phenomenon of a boom in one industry causing declines in the rest of the economy c. A sudden and unexpected devaluation of a currency as a consequence of policy controls d. The problem that arises when high imports force an economy to borrow from external sources e. A deficit in the balance of payments of the economy that arises due to a sudden appreciation of the domestic currency