If the average productivity of Indian firms is rising more quickly than the average productivity of American firms, which of the following would you expect to see? (India's currency is the rupee.)
A) an increase in the prices of Indian products
B) a decrease in the value of the rupee relative to the dollar
C) an increase in the quantity demanded of Indian products relative to American products
D) All of the above are correct.
C
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The above figure shows Dana's marginal benefit curve for ice cream. If the price of ice cream is $2 per gallon and Dana is allowed to buy only 8 gallons of ice cream, then her consumer surplus on the 8th gallon is
A) $1. B) $2. C) $3. D) $8.
What was the consequence of the United States putting an anti-dumping tax on flat panel displays?
a. It created a trade war with other countries. b. It protected buyers from paying a low price for flat panels display. c. It increased employment in the United States. d. It drove the laptop manufacturing industry out of the United States.
Microsoft sells a special version of its Windows operating system at a low price in countries where cheap pirated software is widespread. Since the cost of producing another copy of this software is the same as the cost of producing another copy of the regular Windows product, why is Microsoft charging this lower price?
A. It is trying to take advantage of the different demand elasticities in the different countries. B. The price differences are due to differences in cost among countries. C. The differential pricing reflects the differences in the barriers to entry. D. The price differential is explained by the lower cost to develop the new software.
If the debt of the federal government decreases by $20 billion in one year the budget:
A. deficit in that year must be $20 billion. B. surplus in that year increases by $20 billion. C. deficit in that year decreases by $20 billion. D. surplus in that year must be $20 billion.