Suppose a case of French wine has a price of 1,500 euros. To a U.S. wine importer, its price falls from $300 to $280. This could happen as a result of the dollar ___________ against the euro, which means the euro has a ____________ dollar price
A) depreciating; higher
B) depreciating; lower
C) appreciating; higher
D) appreciating; lower
D
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Why is a small country more likely to gain from international trade than a large country?
a. Because autarkic relative prices in a small country are likely to be quite different from the world relative prices. b. Because a small country, unlike a large country, does not have the resources it needs to be self-sufficient. c. Because small countries tend to be specialized in their production, while large countries tend to be diversified. d. Because a small country is less likely to encounter decreasing returns to scale than is a large country.
Each of the 15 members of the European Union that joined before May 2004 use the euro as their currency
Indicate whether the statement is true or false
If output is increased beyond the point where total profit is maximized,
A. total profits stay constant. B. total profits will decline. C. marginal profit will be positive. D. MR will be increasing.
Which economists believe a decrease in marginal tax rates will ultimately cause the economy to move from point B to point D in Figure 18.3?
A. Modern Keynesians. B. Supply-siders. C. Monetarists. D. Keynesians.