Ceteris paribus, a rise in interest rates in the United States will cause the yen price of the dollar in international exchange markets to ________; i.e., the dollar ________ in value against the yen
A) increase; appreciates
B) increase; depreciates
C) decrease; depreciates
D) decrease; appreciates
Answer: A
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The rail system in Metropolis is a natural monopoly. If the government regulates the system by setting the fare equal to marginal cost, which of the following will be true?
a. The managers of the rail system will be allowed to adjust marginal cost so that they can get a normal rate of return on capital. b. The managers of the rail system will be allowed to adjust marginal cost so that they can get a fair profit. c. The rail system will earn economic profit at that fare. d. If the government doesn't give the rail system a subsidy to supplement revenue from fares, the system will face continuous economic losses. e. If the government doesn't give the rail system a subsidy to supplement revenue from fares, fare increases will push marginal cost upward.
On a given day, the exchange rate for one U.S. dollar is 1.2 Canadian dollars and 0.5 British pounds. Exactly six months later, the exchange rate for one U.S. dollar is 1.1 Canadian dollars and 0.7 British pound. From the information given, we can say that:
a. the dollar has appreciated relative to Canadian dollars and depreciated relative to British pounds. b. the dollar has appreciated relative to British pounds and depreciated relative to Canadian dollars. c. the dollar has appreciated relative to both British pounds and Canadian dollars. d. the dollar has depreciated relative to both British pounds and Canadian dollars. e. there is no change in the relative value of the U.S. dollar.
Janie decides to give up her $200,000 a year job as the producer of the most popular television news show in Seattle in order to cultivate and sell orchids, which she anticipates will yield her an annual income of $30,000 . To an economist,
a. she may be mother earth, but she's not making a rational economic decision b. it is impossible to comment on her decision because we can't engage in interpersonal comparisons of utility c. her total utility will fall d. there is no doubt that the utility she gains from working with orchids must be greater than the utility she gains working as a television producer e. it is clear that working has a negative utility for her
Occurs whenever the quantity supplied is less than the quantity demanded
What will be an ideal response?