Which of the following would tend to raise the value of the U.S. dollar in foreign exchange markets?
A. A rise in U.S. interest rates
B. An easy monetary policy in the United States
C. A contractionary fiscal policy in the United States
D. An increase in the U.S. demand for foreign oil
A. A rise in U.S. interest rates
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Answer the following statement(s) true (T) or false (F)
1. A doubling of all prices has the same effect on the budget line as reducing income by half. 2. If the consumer's income doubles, then his optimal purchases of all goods will double. 3. If the consumer's income and all prices simultaneously triple, then his optimum will not change. 4. The slope of the budget line always equals the consumer's marginal value. 5. The budget line illustrates the consumer's opportunities and the indifference curve illustrates the consumer's preference.
In the short run, which of the following is FALSE about the shutdown point?
A) Total revenue is equal to total fixed cost. B) Total revenue is equal to total variable cost. C) Product price is equal to the minimum average variable cost. D) Price multiplied by quantity must be equal to minimum average variable cost multiplied by quantity.
Which of the following statements is true?
A. Comparative advantage does not require absolute advantage. B. Absolute advantage requires comparative advantage. C. Comparative advantage requires absolute advantage. D. Absolute advantage implies comparative advantage.
Reaching a Nash equilibrium means that:
A. the outcome will be positive-positive. B. the players have failed to reach a stable outcome because one player will always wish to change his strategy once he finds out what the other player is doing. C. a cooperative equilibrium has been reached. D. the players have reached a stable outcome where neither would wish to change his strategy once he finds out what the other player is doing.