If the U.S. dollar appreciates in value relative to foreign currencies, then this will:
A. cause a movement downward along the aggregate demand curve.
B. cause a movement upward along the aggregate demand curve.
C. increase aggregate demand.
D. decrease aggregate demand.
Answer: D
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Interindustry trade is not based on comparative advantage since it consists of the export and import of similar countries and mostly between countries that have similar productivity, technology, and factor endowments
Indicate whether the statement is true or false
The last $2,000 of Rolanda's wealth adds less to her utility than the previous $2,000 . Based on this information, Rolanda has
a. increasing marginal utility of wealth and is risk averse. b. increasing marginal utility of wealth and is not risk averse. c. decreasing marginal utility of wealth and is risk averse. d. decreasing marginal utility of wealth and is not risk averse.
Economic theory is a valuable tool for business decision making because it
A. identifies for managers the essential information for making a decision. B. creates a realistic, complex model of the business firm. C. assumes away the problem. D. provides an easy solution to complex business problems.
How do economists define the opportunity cost of producing something?
a. all the options given up when a choice is made b. the value of the best alternative that was not pursued c. the average debt incurred to establish a business d. the financial risk involved in pursuing an opportunity