The exchange rate is volatile because
A) the demand curve and the supply curve are horizontal.
B) when a relevant factor changes, demand and supply tend to change in opposite directions.
C) the demand curve is vertical.
D) the supply curve is vertical.
E) when a relevant factor changes, demand and supply tend to change in the same direction.
B
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The argument that developing countries with lax environmental standards will attract foreign manufacturers who want to escape stricter standards in their own countries is known as the pollution havens hypothesis
Indicate whether the statement is true or false
The Lerner Index is derived from the profit-maximizing condition of a firm
Indicate whether the statement is true or false
Happy Cows is a dairy farm that is currently earning $50,000 in economic profit. The managers of Happy Cows are considering adding a second dairy farm, which will generate an additional $10,000 in economic profit. It is economically sound for the managers of Happy Cows to add the second farm if, after accounting for the managerial diseconomies, the first farm's economic profits exceed ________.
A) $30,000 B) $40,000 C) $10,000 D) $20,000
Which of the following would be the most accurate description of demand for health care? a. perfectly elastic
b. relatively elastic c. relatively inelastic d. perfectly inelastic