If the interest rate on Swiss franc assets increases while interest rates in the United States remain constant, the
A) quantity of dollars demanded will decrease.
B) demand for dollars will increase.
C) demand for dollars will decrease.
D) quantity of dollars demanded will increase.
C
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When the ratio of domestic prices to foreign prices falls:
A) the real exchange rate depreciates only when the nominal exchange rate depreciates. B) the real exchange rate depreciates even when the nominal exchange rate is constant. C) the real exchange rate appreciates. D) the real exchange rate depreciates only when the nominal exchange rate appreciates.
The price elasticity of supply tells us:
A. the percentage change in quantity supplied when the price of the good changes by one percent. B. in which direction the quantity supplied changes as we move along the supply curve. C. how quickly the supply will respond to a change in price. D. the magnitude of shift in the supply curve in response to a change in price.
The convergence theory is based on the idea of:
A. decreasing marginal returns. B. decreasing income per capita. C. increasing rates of income per capita. D. increasing opportunity costs.
For a privately owned business in a competitive market setting,
a. reducing resource use while producing the same output adds to profit and typically reduces waste products and thus cuts pollution as well. b. when property rights are well-defined and strictly enforced, the firm will be able to pollute air and water without having to bear the cost of the damages imposed on others. c. wasteful use of resources results in more pollution but greater profit. d. reducing pollution almost never pays.