A depreciation of the dollar will
A. discourage foreigners from buying U.S. goods.
B. encourage Americans to invest in foreign assets.
C. increase the amounts of U.S. dollars demanded by foreigners.
D. throw the U.S. economy into a recession.
C. increase the amounts of U.S. dollars demanded by foreigners.
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A government-imposed price floor has what effect on efficiency?
A. Consumer surplus increases. B. There is little dead weight loss. C. Consumer and producer surplus increases. D. Producer surplus increases.
The time it takes for an additional dollar of net government expenditures to work its way through the economy and have its full effect
A) is about one quarter of a year. B) is between one and two years. C) is not yet known precisely because little empirical research has been done on the question. D) probably cannot be predicted from an examination of historical data.
The government significantly raised farm incomes by raising farm prices by: (i) destroying crops, (ii) slaughtering millions of baby pigs and pregnant sows, (iii) paying farmers not to grow crops and (iv) injecting dye into harvested potatoes,
making them inedible. Indicate whether the statement is true or false
An example of a factor of production is
A) a car produced by an auto manufacturer.
B) a worker hired by an auto manufacturer.
C) a loan granted to an auto manufacturer.
D) the automobiles exported by an auto manufacturer.