An Italian company exchanges euros for dollars from U.S. residents and then uses the dollars to buy U.S. products to sell in its stores in Rome. U.S. residents who exchanged their dollars for euros use the euros to buy bonds issued by French corporations. At this point
a. both U.S. net exports and U.S. net capital outflows have risen.
b. both U.S. net exports and U.S. net capital outflow have fallen.
c. U.S. net exports have risen and U.S. net capital outflow have fallen.
d. U.S. net exports have fallen and U.S. net capital outflow have risen.
a
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In a centrally planned economy, the concept of marginal cost
A) is important if planners want to achieve their objectives at the lowest possible cost. B) is irrelevant because resources can be obtained by government decree. C) is irrelevant because socialist firms do not have to earn profits. D) is irrelevant if industries can be subsidized.
Percentage markups are characteristically lower in supermarkets than in convenience stores because
A) convenience stores must charge high markups to compensate for low volume. B) marginal revenue is greater in supermarkets than in convenience stores. C) supermarkets are able to operate with a lower percentage return on investment. D) supermarkets can take advantage of quantity discounts. E) the demand curves of customers patronizing supermarkets tend to be more elastic.
A typical neoclassical aggregate supply (AS) curve ______________ and a typical neoclassical Phillips curve __________________.
a. slopes upward; slopes downward b. is vertical; is vertical c. is vertical; slopes downward d. slopes upward; is vertical
Which of the following is not held constant as you move along the demand curve?
A. The price of that good B. The incomes of consumers C. The price of other goods D. The preferences of consumers for the good