Suppose the government of New Country fixes the exchange rate of its currency, the Newo, in terms of the U.S. dollar. Initially the exchange rate is set at $0.50 per Newo. Later the government changes the exchange rate to $0.75 per Newo. This is an example of a(n):
A. depreciation.
B. revaluation.
C. appreciation.
D. devaluation.
Answer: B
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The increasing cost in the law of increasing cost is a(n) ____________ cost.
A. average B. fixed C. opportunity D. declining
What is the difference between accounting profit and economic profit?
What will be an ideal response?
Suppose that Bill and Ted use a tit-for-tat scheme to encourage cartel pricing and Bill chooses the low price for a single month. Bill and Ted will deviate from cartel pricing for two months.
Answer the following statement true (T) or false (F)
Which statement is true?
A. Most economists support rent control laws. B. Usury laws and rent control are price ceilings. C. Usury laws have never had any effect because they are set well above interest rates. D. None of these choices are true.