If currencies around the world are based on the gold standard, and the EU lowers the amount of gold for which the euro will trade, then holding all else constant,
A) the euro will depreciate against the dollar.
B) the value of U.S. exports to EU countries in terms of the euro will decrease.
C) the value of the euro relative to the dollar will stay constant.
D) the euro will appreciate against the dollar.
A
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If Mary prefers bananas to plums and plums to peaches, but is indifferent between bananas and oranges, she
A. prefers plums to oranges. B. prefers oranges to peaches. C. is indifferent between oranges and plums. D. is indifferent between oranges and peaches.
Refer to Figure 12-5. The figure shows the cost structure of a firm in a perfectly competitive market. If the firm's fixed cost increases by $1,000 due to a new environmental regulation, what happens to its profit-maximizing output level?
A) It remains the same. B) It decreases. C) It increases. D) It could increase, decrease, or remain constant, depending on whether the firm is able to cut costs somewhere else.
Which of the following is not one of the four main categories of spending identified by John Maynard Keynes?
A) government purchases B) transfer payments C) planned investment D) consumption
In which of the following market structures must the price and output decisions of an individual firm include the possible price and output reactions of the firm's rivals?
a. Monopoly. b. Oligopoly. c. Perfect competition. d. Cartel.