An appreciation of the U.S. dollar ________ the price of U.S. imports, and ________ the price of U.S. exports
A) lowers, lowers
B) increases, increases
C) increases, lowers
D) lowers, increases
Ans: D) lowers, increases
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If an average cost pricing rule is imposed on the firm in the figure above, the price will be
A) $5 per unit. B) $25 per unit. C) $15 per unit. D) $20 per unit.
Which of the following best describes the idea of a political business cycle?
a. Politicians have a bias to cut taxes and increase government spending. b. Special interests result in alternating federal deficits. c. Politicians will use fiscal and monetary policy to cause output, real incomes, and employment to be rising prior to elections. d. Good intentions of politicians influence the business cycle.
The "Applied Perspective" titled "Cross Elasticity in the Salmon Industry" suggests that the cross elasticity of demand between farm-raised salmon and wild salmon is
a. positive and fairly large so the two types of fish are close substitutes consumers b. positive but close to zero so the two types of fish are in different markets c. negative because consumers like to serve both types as complementary goods d. high so that a price decrease leads to a total revenue increase e. low so that a price decrease leads to a total revenue decrease
When demand for a product is very inelastic, the burden of a tax falls mainly on
a. producers. b. consumers. c. tax collectors. d. people who drop out of the market.