Americans buying Japanese cars create a
A) demand for U.S. dollars and supply of Japanese yen.
B) demand for both U.S. dollars and Japanese yen.
C) supply of U.S. dollars and demand for Japanese yen.
D) supply of both U.S. dollars and Japanese yen.
C
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A tariff is a tax on ________________.
Fill in the blank(s) with the appropriate word(s).
Which of the following best defines the real exchange rate?
A) the price of foreign bonds in terms of domestic bonds B) the price of foreign currency in terms of domestic currency C) the price of domestic goods in terms of foreign goods D) the price of domestic currency in terms of foreign currency E) none of the above
In February, market analysts predict that the price of titanium will rise in March. What happens in the titanium market in February, holding everything else constant?
A) The quantity of titanium demanded and the quantity of titanium supplied both increase. B) The supply curve shifts to the right. C) The supply curve shifts to the left. D) The demand curve shifts to the left.
A firm is making a long-run planning decision. It wants to decide on the optimal size of plant and labor force. It is considering building a medium-sized plant and hiring 100 workers
Engineering estimates suggest that at those levels, the marginal product of capital will be 100 and the marginal product of labor will be 75. If the wage rate is $5 and the rental rate on capital is $10, is the firm making the right decision? Support your answer.