As a currency depreciates:
A) exports increase and imports decrease.
B) exports decrease and imports increase.
C) exports increase and imports increase.
D) exports decrease and imports decrease.
A
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Suppose the exchange rate in the year 2010 was 4 yuan per dollar and in 2011 the exchange rate fell to 3 yuan per dollar
If the price of a Chinese sweater was 120 yuan in both years, the new dollar price in 2011 would be ________ and imports of Chinese sweaters would ________. A) $30; increase B) $40; increase C) $40; decrease D) $30; decrease E) $40; stay the same because the price stayed the same at 120 yuan
If duopoly firms that are not colluding were able to successfully collude, then
a. price and quantity would rise. b. price and quantity would fall. c. price would rise and quantity would fall. d. price would fall and quantity would rise.
GDP excludes important factors that affect people's well-being, such as the value of:
A. leisure time. B. goods produced domestically but sold to foreigners. C. services purchased by households. D. government purchases of goods and services.
Politics enters into the determination of economic policy in a negative way because:
A. it does not take market failures or failures of market outcome into account in formulating policy. B. political decisions do not always reflect the will of society. C. political decisions always reflect the will of society. D. it takes market failures and failures of market outcome into account in formulating policy.