What happens when the dollar price of euros changes from $1.00 to $2.00?
a. European products become relatively cheaper to U.S. consumers.
b. A euro becomes worth $0.50.
c. The quantity of euros demanded by U.S. consumers decreases.
d. The U.S. dollar becomes stronger compared to the euro.
c. The quantity of euros demanded by U.S. consumers decreases.
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A payment that is made by the government for which no goods or services are given in return is known as
A) a public good. B) a transfer payment. C) a negative externality. D) a free rider.
What is an example of a sequential game?
What will be an ideal response
Assuming a firm is selling its output in a purely competitive market, its resource demand curve can be determined by:
A. multiplying total product by product price. B. multiplying marginal product by product price. C. dividing total revenue by marginal product. D. comparing marginal product with various possible input prices.
Which of the following statements is FALSE, with respect to what economist Adam Smith called the diamond-water paradox?
A. There are relatively few diamonds, so the marginal utility of the last diamond consumed is relatively high. B. Total utility does not determine what people are willing to pay for a unit of a particular commodity; marginal utility does. C. The total utility of water greatly exceeds the total utility derived from diamonds. D. The demand for water is much smaller than the demand for diamonds.