When a country's real exchange rate appreciates,
A) its nominal exchange rate must also have appreciated.
B) its nominal exchange rate must have depreciated.
C) it can trade its goods for fewer units of foreign goods.
D) it can trade its goods for more units of foreign goods.
D
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Price controls are usually enacted in response to
a. popular opinion. b. governmental studies. c. scholarly research on the effects of high prices. d. laws enacted in other countries. e. All of the above are correct.
Which of the following algebraic forms of a demand curve yields an isoelastic demand curve (i.e. a demand with constant elasticity)?
A. Q = a - bP + cI B. log(Q) = a - b log(P) + c log(I) C. Q = a - b log(P) + c log(I) D. log(Q) = bP + cI
It is likely that people will work less when the marginal tax rate is
A. 91 percent. B. 2 percent. C. 26 percent. D. 30 percent.
For allocative efficiency to hold
A) price must equal marginal revenue of the last unit sold. B) price must equal the marginal cost of the last unit produced. C) the average variable cost must be minimized in production. D) the average total cost must be minimized in production.