The J-curve illustrates the effects of
A) changes in Y on NX.
B) changes in Y on NX.
C) changes in the real exchange rate on NX.
D) changes in Y on imports.
A
You might also like to view...
Which of the following would be least likely to lead the Justice Department and the FTC to block a proposed horizontal merger?
A) A finding that the resulting firm might be able to unilaterally affect price and output. B) A finding that the potential for entry into the market by new firms would be adversely affected. C) A finding that the potential for coordination among sellers in the market would be enhanced. D) A finding that resulting cost savings and efficiencies would offset any increase in market power.
If average cost is positive
A) marginal cost equals average cost. B) marginal cost exceeds average cost. C) marginal cost is less average cost. D) Not enough information is given.
Which is the most accurate statement?
A. There is basically no real difference between shutting down and going out of business. B. One big difference between shutting down and going out of business is that after you've shut down you're still paying bills, but when you've gone out of business, there are no more bills to pay. C. When you shut down you must still pay your variable costs, but when you go out of business you have no costs at all. D. Shutting down is a long run option, while going out of business is a short run option.
Consider an income tax and a head tax, the sizes of which have been set so that the government collects the same amount of money under each tax. Which tax does the consumer prefer?
a. The consumer is indifferent between the two taxes, since he pays the same amount of money under each tax.
b. The consumer prefers the head tax, because it does not lower the relative wage as does the income tax.
c. The consumer prefers the income tax, because it can be avoided by increasing the amount of leisure time consumed.
d. The consumer may prefer either tax, depending on whether the income tax increases or decreases the number of hours of work at the optimum.