Two cities face identical prices for their housing. City A decided to be a pollution free city "Clean town" and all the factories would locate in city B "Smogville", we expect the prices of housing in city A "Clean town" to
a. increase
b. decrease
c. stay the same
d. none of the above
a
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"Cheap foreign wages" is a poor argument for protection because it fails to recognize the importance of productivity. Which of the following does NOT contribute to increasing productivity?
A) Education and training B) Government subsidies C) Infrastructure D) Capital
Under a system of flexible exchange rates, a decrease in the demand for a country's currency on the foreign exchange market will: a. cause the country's currency to depreciate in value
b. cause the country's currency to appreciate in value. c. make the country's goods more expensive to foreigners. d. make foreign goods less expensive to the country's citizens.
Average total cost is
a. the change in cost as output decreases b. the change in cost as output increases c. TC / quantity of output d. MC - TC e. AVC - AFC
Foreign exchange markets are markets wherein the goods of international trading partners are exchanged
Indicate whether the statement is true or false