If a country fixes its exchange rate below the equilibrium value,
a. the result is an excess supply of that currency
b. there will be downward pressure on the exchange rate
c. its GDP will increase
d. its GDP will decrease
e. it will have to sell its own currency in order to eliminate the excess demand
C
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Legal restrictions on entry into an industry
a. are strongly opposed by those already in an industry. b. are promoted through lobbying efforts by those already in the industry, thereby further increasing the social costs of monopoly. c. are promoted by those who wish to enter the industry, thereby potentially increasing the social welfare generated by the industry. d. are always instituted to protect the public's health and welfare.
An economy can improve its standard of living by
A) reducing the amount of human capital workers have. B) increasing the amount of capital available per hour worked. C) organizing production so that the quantity of goods produced per hour will decrease. D) all of the above
If demand for a product increases, ceteris paribus, the equilibrium:
A. price increases. B. price decreases. C. price remains unchanged. D. quantity decreases.
A firm that produces a good with many substitutes will most likely find that:
A. raising its price will increase total revenue. B. lowering its price will not affect total revenue. C. lowering its price will increase total revenue. D. lowering its price will decrease total revenue.