Arabia Telecom is a major producer of telecommunications equipment in Dubai. The Free Market French Conglomerate is a collection of the top 5 telecommunication firms in France that wish to upgrade their communications infrastructure. When the conglomerate buys 5 million United Arab Emirates Dirhams worth of equipment from Arabia Telecom, the:
a. demand curve for United Arab Emirates Dirhams and
the supply curve for euros both shift rightward.
b. demand curve for United Arab Emirates Dirhams shifts leftward and the supply curve for euros shifts rightward.
c. supply curve for United Arab Emirates Dirhams shifts leftward and the demand curve for euros shifts rightward.
d. supply curve for United Arab Emirates Dirhams and the demand curve for euros both shift rightward.
a
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The growth of GDP may understate changes in the economy's economic well-being over time if the ________.
A. amount of leisure decreases B. quality of products and services improves C. environment deteriorates because of pollution D. distribution of income becomes increasingly unequal
John Amaker owns orange groves and hires pickers for a two-week period as shown in Table 7-3.Table 7-3 Pickers Oranges Picked 1 1,000 2 2,000 3 3,000 4 3,900 5 4,700 6 5,400 7 6,000 8 6,200 9 6,000 In Table 7-3, the marginal physical product of the fifth picker is
A. 4,700. B. 900. C. 800. D. 3,900.
An increase in the foreign real interest rate will tend to cause, other things the same ________
A) individuals to hold fewer dollar assets B) an increase in the return on dollar assets relative to foreign assets C) an appreciation in the value of the U.S. dollar D) an increase in the demand for dollars
Assume the standard trade model with two countries (Alpha and Beta), two goods (food and drink), and two factors of production (land and labor). Further assume that Alpha is relatively labor-abundant and drink is relatively labor-intensive. If the countries engage in free trade, the price of food will
A. fall in Alpha and rise in Beta. B. fall in both countries. C. rise in both countries. D. rise in Alpha and fall in Beta.