If, in 2000, $1 = 1.5 euros, and in 2007, $1 = 0.9 euros, which of the following statements would be TRUE?
a. More American tourists will find it cheaper to travel to Europe.
b. More Europeans will stay home as visits to the United States become more expensive.
c. Europeans will import fewer products from the United States.
d. Americans will import fewer products from Europe.
Ans: d. Americans will import fewer products from Europe.
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Recessions can sometimes last less than a single year
a. True b. False
Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. src="https://sciemce.com/media/4/ppg__1420829190927__f1q535g1.jpg" alt="" style="vertical-align: 0.0px;" height="113" width="397" />If the first store to open in Miniville is located at A, to maximize the number of customers it attracts, the next store to open should locate:
A. just west of A.
B. just east of A.
C. at C.
D. at B.
The antitrust laws are based on the:
A. creative destruction view of competition. B. idea that competition leads to greater economic efficiency than does a monopoly. C. view that nonprice competition should be strictly regulated by government. D. view that all negative externalities should be eliminated by government action.
History and Adam Smith both point out that people of the same trade
a. often face the temptation to engage in collusion. b. rarely consider engaging in collusion. c. meet only to consider how to improve the quality of their products. d. scrupulously avoid engaging in discussions about their trade since they are competitors.