Due to macroeconomics interdependence between large countries, the effect of a permanent monetary policy expansion by Home is as follows: Home output
A) rises, Home's currency depreciates, and Foreign output may rise or fall.
B) falls, Home's currency depreciates, and Foreign output may rise or fall.
C) rises, Home's currency appreciates, and Foreign output may rise or fall.
D) rises, Home's currency depreciates, and Foreign output rises.
E) falls, Home's currency appreciates, and Foreign output may rise or fall.
A
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Costs that have already been incurred, and which cannot be recovered, are known as
A) short-run fixed costs. B) unavoidable costs. C) sunk costs. D) implicit costs.
The condition for utility maximization states that the marginal utility per dollar spent on any product must equal the marginal utility per dollar spent on other goods
a. True b. False Indicate whether the statement is true or false
Which of the following might be an example of an economic argument against advertising?
a. It causes the demand for the good to be more elastic b. It allows the producer to earn an economic profit in the long run c. People may be deluded into thinking that a good with a brand name is better than an otherwise identical generic brand d. The claims made in the ads are almost always false
Industries X and Y both have four-firm concentration ratios of 65 percent, but the Herfindahl index for X is 1,500 while that for Y is 2,000. These data suggest:
A. greater market power in X than in Y. B. greater market power in Y than in X. C. that X is more technologically progressive than Y. D. that price competition is stronger in Y than in X.