If the exchange rate changes so that more Mexican pesos are required to buy a dollar, then:
A. the peso has appreciated in value.
B. Americans will buy more Mexican goods and services.
C. more U.S. goods and services will be demanded by the Mexicans.
D. the dollar has depreciated in value.
B. Americans will buy more Mexican goods and services.
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The regular pattern of income variation over a person's life is called the
a. earned income cycle. b. substitution effect. c. life cycle. d. pattern of change.
We would expect the aggregate demand curve to be
A. Vertical. B. Horizontal. C. Upward sloping. D. Downward sloping.
Consider a Cournot duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi = 2. Based on this information, consumer surplus in this market is:
A. $2,134.22. B. $16.33. C. $32.67. D. $1,067.11.
According to behavioral economists, self-control problems:
A. are a rare aberration from rational decision making. B. are often caused by time inconsistency. C. can be easily overcome by providing decision makers with better information. D. occur frequently but have no impact on the ability of neoclassical models to predict economic outcomes.