The price of the average domestic good or service relative to the price of the average foreign good or service, when prices are expressed in terms of a common currency is called the ________ exchange rate.
A. fixed
B. real
C. flexible
D. nominal
Answer: B
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National accounts measure ________
A) the labor force participation rate in a country B) the total amount of capital goods available in a country C) the level of aggregate economic activity in a country D) the total money supply in a country
In the past few years two deviations from U.S. free trade policies have been _________________ and ______________________.
Fill in the blank(s) with the appropriate word(s).
To manufacture 1,000 pairs of shoes in a week, a firm can use 1,500 workers and 50 machines or 100 machines and 2,000 workers. Which method is more technically efficient?
A. 2,000 workers and 100 machines B. 1,500 workers and 50 machines C. Both are equally efficient. D. Neither could be considered efficient.
In contrast with perfect competition, excess capacity characterizes monopolistic competition. Excess capacity is due to which of the following?
A) Monopolistically competitive firms produce at the minimum point on their average total cost curves. B) Monopolistically competitive firms face downward-sloping demand curves. In the long run, firms produce where their demand curves are tangent to their long-run average total cost curves. C) Monopolistically competitive firms produce where marginal revenue is equal to marginal cost. D) Monopolistically competitive markets have low barriers to entry.