All else being equal, if European firms switch from U.S. produced software to software produced in India, the equilibrium value of the U.S. dollar will:
A. fall.
B. become fixed.
C. rise.
D. either rise or fall depending on whether the supply or demand for dollars changes more.
Answer: A
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The demand for Godiva mint chocolates is likely quite elastic because
a. there are many close substitutes. b. this particular type of chocolate is viewed as a luxury by many chocolate lovers. c. the market is narrowly defined. d. All of the above are correct.
The Bureau of Labor Statistics divides the adult population into two categories: those who are employed and those who are unemployed
a. True b. False Indicate whether the statement is true or false
This monopolist
A. is in the short run.
B. is in the long run.
C. may be in the short run or the long run.
Exhibit 11-2 Aggregate demand and supply model
Suppose the economy in Exhibit 11-2 is in equilibrium at point E1 and the marginal propensity to consume (MPC) is 0.75. Following Keynesian economics, the federal government can move the economy to full employment at point E2 by:
A. decreasing government tax revenue by approximately $33 billion. B. decreasing government tax revenue by $750 billion. C. increasing government tax revenue by $100 billion. D. increasing government tax revenue by approximately $33 billion.