Fluctuating exchange rates can alter a multinational firm's profits and losses. The U.S. automobile manufacturer Tesla produces vehicles in the United States and sells them in Norway
(Norway is Tesla's largest overseas market.) If the dollar appreciates against the Norwegian krone, then Tesla's revenues from these operations should ________ and its profits from these operations should ________.
A) fall; rise B) rise; fall C) rise; rise D) fall; fall
D
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When the demand for a good is perfectly elastic, ________
A) total revenue is as large as possible B) the demand curve for the good is vertical C) the price elasticity of demand is infinite D) the price elasticity of demand is zero
What type of consumer goods are most affected by the business cycle: durable goods or nondurable goods? Why?
What will be an ideal response?
Suppose demand for a good is QD = 100 - P and supply is QS = -20 + P. What is the value consumers place on the amount of the good they consume?
a. 60 b. 2400 c. 2800 d. 3200
Which of the following statements is FALSE?
A. In the short run all inputs are fixed. B. A firm plans in the long run and operates in the short run. C. In the long run all inputs are variable. D. In the short run, a firm can change some but not all of its inputs.