The appreciation of the dollar will make U.S. goods ________ to foreigners and make imports ________ for U.S. residents.
A. more expensive; more expensive
B. cheaper; cheaper
C. more expensive; cheaper
D. cheaper; more expensive
Answer: C
You might also like to view...
The change in the savings rate during the 1990s is NOT consistent with
A) Friedman's permanent-income hypothesis. B) Modigliani's life cycle hypothesis. C) the boom in the stock market. D) All of the above.
In the Stackelberg model, suppose the first-mover has MR = 15 - Q1, the second firm has reaction function Q2 = 15 - Q1/2, and production occurs at zero marginal cost
Why doesn't the first-mover announce that its production is Q1 = 30 in order to exclude the second firm from the market (i.e., Q2 = 0 in this case)? A) In this case, MR is negative and is less than MC, so the first-mover would be producing less than the optimal quantity. B) In this case, MR is negative and is less than MC, so the first-mover would be producing too much output. C) This is a possible outcome from the Stackelberg duopoly under these conditions. D) We do not have enough information to determine if this is an optimal outcome for this case.
Which of the following is a true statement concerning federal transfer payments?
A. Transfer payments ultimately must be repaid to the government by recipients. B. Transfer payments are included in the imports category of GDP. C. Transfer payments are included in the net exports category of GDP. D. Transfer payments are payments made by the government for which no good or service is currently received in return.
In the long run, monopolistic competition starts to look like
A. monopoly. B. a market in disequilibrium. C. perfect competition. D. oligopoly.