When the yuan per dollar real exchange rate appreciates:
A) the U.S. net exports to China increase while the Chinese net exports to U.S. decrease.
B) both the U.S. net exports to China and the Chinese net exports to the U.S. decrease.
C) the U.S. net exports to China decrease while the Chinese net exports to U.S. increase.
D) both the U.S. net exports to China and the Chinese net exports to the U.S. increase.
C
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Because monopolists charge a price in excess of marginal cost, it must be the case that monopolists:
A. produce more than the socially optimal level of output. B. earn a positive economic profit. C. produce less than the socially optimal level of output. D. earn a negative economic profit.
A business incurs the following costs per unit: Labor $5/unit; Materials $3/unit and rent $5000/month. If the firm produces 1000 units a month, the total fixed costs equals
a. $5,000 b. $8,000 c. $13,000 d. $3,000
A common explanation for the behavior of the short-run U.S. Phillips curve in 2009 and 2010 is that, over the previous 20 or so years, the Federal Reserve had
a. established a lot of credibility in its commitment to keep inflation at about 2 percent. b. established a lot of credibility in its commitment to keep inflation at about 5 percent. c. failed to establish significant credibility in its announced intent to keep inflation at about 2 percent. d. failed to establish significant credibility in its announced intent to keep inflation at about 5 percent.
Why are the poor given little weight in the measure of consumer surplus?
A. The poor don't tend to vote. B. The poor have little income. C. The poor don't produce many goods. D. Many of the poor receive welfare payments.