In the foreign exchange market, the demand for dollars increases and the demand curve shifts if the
A) U.S. exchange rate falls.
B) expected future exchange rate falls.
C) U.S. interest rate differential decreases.
D) U.S. exchange rate rises.
E) U.S. interest rate differential increases.
E
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What is the order in which an economy tries to solve the issue of resource allocation?
A. Production planning, distribution, and output selection B. Output selection, production planning, and distribution C. Production planning, output selection, and distribution D. Distribution, production planning, and output selection
Which of the following is not an argument for private sector production of collective consumption goods?
a. The good might only be a collective consumption good because of current government production. b. Private sector production provides information about consumer preferences about the good. c. The private sector has lower pay scales then government, lowering overhead costs. d. Taxes used to finance government production produce deadweight losses.
If price were lowered from $10 to $8 and quantity demanded rose from 50 to 51, calculate elasticity; state whether demand is elastic, unit elastic, or inelastic; and find how much total revenue was when price was $10 and $8.
What will be an ideal response?
A firm could be guilty of antitrust violations using the judgment by structure criteria despite:
A. controlling only 10 percent of the market. B. restraining trade through cartels. C. pricing goods above the competitive price. D. producing the best product it could at the lowest possible cost.