Depreciation of the dollar will tend to
A. decrease the prices of both American imports and exports.
B. increase the prices of both American imports and exports.
C. decrease the prices of the goods Americans import, but increase the prices to foreigners of the goods Americans export.
D. increase the prices of the goods Americans import, but decrease the prices to foreigners of the goods Americans export.
D. increase the prices of the goods Americans import, but decrease the prices to foreigners of the goods Americans export.
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Which of the following variables is used to determine a country's economic growth?
i. real GDP ii. wages iii. inflation A) ii and iii B) i, ii and iii C) i and ii only D) i only E) i and iii
The base year matters for the computation of real GDP because
A) otherwise we cannot compute growth rates. B) relative prices can change over time. C) it allows an international comparison of GDP. D) it establishes a target for macroeconomic policy.
The question of how much labor a firm will hire comes down to:
A. whether added workers are going to generate more revenue or not. B. if the added workers are going to add profits to the firm. C. whether the value of the marginal product is greater than, less than, or equal to the average total cost. D. the amount of capital that will be required in order to ensure the worker is productive.
Assume the market for pork is perfectly competitive. When one pork buyer exits the market,
a. the price of pork increases. b. the price of pork decreases. c. the price of pork does not change. d. there is no longer a market for pork.