If the exchange rate measured in euros per dollar increases, then
A) the dollar depreciates relative to the euro.
B) the euro appreciates relative to the dollar.
C) the euro depreciates relative to the dollar.
D) neither currency appreciates or depreciates.
Answer: C
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The following table provides data for an economy in a certain year.Consumption expenditures1,000Imports600Government purchases of goods and services700Construction of new homes and apartments500Sales of existing homes and apartments600Exports500Government payments to retirees200Household purchases of durable goods300Beginning-of-year inventory500End-of-year inventory600Business fixed investment300Given the data in the table, compute the government purchases component of GDP.
A. 700 B. 900 C. 500 D. 200
Comparative advantage is directly related to which of the following concepts?
A) productivity B) efficiency C) opportunity cost D) competition E) fairness
The idea of "diminishing returns" means that real GDP ________ as the quantity of labor increases
A) increases at a slower rate B) decreases at a slower rate C) increases at a faster rate D) decreases at a faster rate E) does not change
Assume the average annual CPI values for 2015 and 2016 were 207.3 and 215.3, respectively. What was the percent increase in the CPI between these two years?
A) 3.86 B) 0.96 C) 8.0 D) 1.04