If the income of U.S. citizens falls relative to the income of Japanese citizens, the dollar will __________ in terms of the yen, and the yen will __________ in terms of the dollar
A) appreciate; depreciate
B) appreciate; remain unaffected
C) depreciate; appreciate
D) depreciate; remain unaffected
E) remain unaffected; appreciate
A
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As the U.S. dollar appreciates relative to other currencies, the dollar price of goods imported to the U.S. ________, causing net exports and GDP to ________.
A. rises; fall B. falls; fall C. rises; rise D. falls; rise
When financial institutions are able to reduce the costs of information for each service they offer by applying the same information source to each service, we say that the financial institution is realizing
A) economies of scope. B) economies of scale. C) increasing returns. D) diminishing marginal returns.
The natural real GDP will ________ following a fall in energy prices because
A) rise; labor productivity increases. B) fall; labor productivity declines. C) rise; employment is more attractive relative to leisure. D) A and C are both correct
Consumer surplus measures
A) the extra amount that a consumer must pay to obtain a marginal unit of a good or service. B) the excess demand that consumers have when a price ceiling holds prices below their equilibrium. C) the benefit that consumers receive from a good or service beyond what they pay. D) gain or loss to consumers from price fixing.