When interpreting the meaning of an exchange rate, the first step is to always:
a. know exactly what the exchange rate signifies in terms of which currency is the denominator.
b. watch for ways the currency might lose value.
c. learn about recent behavior of the exchange rate.
d. know exactly what the rate is at any moment in time.
Ans: a. know exactly what the exchange rate signifies in terms of which currency is the denominator.
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The table above shows the PPF of an island community. Choose the best statement
A. Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more berries, it faces a tradeoff. B. When this community produces 4 pounds of fish and 12 pounds of berries it faces a tradeoff, but it is inefficient. C. Suppose that this community produces 5 pounds of fish and 0 pounds of berries. If it decides to gather some berries, it will get a free lunch. D. If this community produces 3 pounds of fish and 22 pounds of berries, production is efficient but to produce more fish it faces a tradeoff.
Refer to Figure 9.3. If the market is in equilibrium, the consumer surplus earned by the buyer of the 100th unit is
A) $0.50. B) $0.75. C) $1.50. D) $2.00. E) $2.75.
The MR curve of a monopolist is
A) downward sloping and below the demand curve. B) downsloping and identical to the demand curve. C) downsloping and above the demand curve. D) horizontal and same as the market demand curve.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs. B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs. C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs. D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.