In the foreign exchange market, the supply curve for dollars slopes upwards because
A) as the exchange rate rises, imports become more expensive, and more dollars are supplied to pay for the imports.
B) as the exchange rate rises, imports become cheaper, and more dollars are supplied to pay for the increase in the quantity of imports.
C) as the exchange rate rises, more dollars are supplied since the profit from selling dollars falls.
D) supply curves always slope upwards.
B
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The theory of comparative advantage suggests that nations should produce a good if they
a. have the lowest opportunity cost. b. have the lowest wages. c. have the most resources. d. can produce more of the good than any other nation.
If lower-income households spend a greater share of their income on cigarettes than do higher-income households, then a tax that raises the price of cigarettes will
A) cause lower-income households to incur a greater loss of consumer surplus than that incurred by higher-income households. B) cause higher-income households to incur a greater loss of consumer surplus than that incurred by lower-income households. C) raise consumer surplus among higher-income households. D) cause consumer surplus to decline among smokers, but the relative impact cannot be determined from the given information.
Households are paid income for the resources they supply in an input market.
Answer the following statement true (T) or false (F)
Refer to the diagram for a pure monopolist. Monopoly price will be:
A. e.
B. c.
C. b.
D. a.