Exports of U.S. goods create a ________ U.S. dollars and create a ________ foreign currencies
A) demand for; demand for.
B) supply of; supply of
C) demand for; supply of
D) supply of; demand for
C
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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for potatoes and that steak and potatoes are complements. What panel describes what happens in this market when the price of steak rises?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
If interest rates rise, what will happen to the nation's exchange rate?
What will be an ideal response?
If the Santiago family, which pays a charge of one cent a gallon, uses about 1,200 gallons of water a month, what is the most accurate statement we can make about their consumer surplus?
A. They definitely enjoy a consumer surplus. B. They may or may not enjoy a consumer surplus. C. They definitely do not enjoy a consumer surplus.
Which of the following illustrates the principle of second best?
A. A tax imposed on land, because this tax distorts economic decisions less than taxes on other factors of production. B. The government imposes a tax on a paper manufacturer that equals the cost of cleaning the river damaged by the waste discharged into the river by the paper manufacturer. C. The government decides to impose taxes on all grains, rather than imposing a tax only on wheat. D. The government imposes taxes on gasoline, and the tax revenue collected is used to pay for road repair.