A rise in the value of a currency in relation to another currency in the international market is called:
a. appreciation.
b. depreciation.
c. devaluation.
d. conservation.
e. redenomination.
a
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If the MPC is 0.6 and the tax rate is 20%, a $200 decrease in autonomous net exports will decrease equilibrium income by
A) $384. B) $416. C) $478. D) $1,666.
One problem that might occur as a result of economic regulation is
A) the firm may be earning more than a normal rate of return on investment. B) the quality of service might be lowered. C) that social regulation may follow. D) the demand for the good may be greater than the supply.
The Consumer Price Index (CPI) is constructed by
What will be an ideal response?
Which one of the following statements is NOT true?
A. A firm that chooses to cheat on a price-fixing scheme should consider the short-term gain in profits from cheating versus the long-term loss in profits from being punished. B. The duopoly-pricing strategy leads to negative economic profits. C. Cartels may break down because of the incentive to cheat. D. Price leadership arrangements are an implicit price-fixing scheme.