A depreciation of the U.S. real exchange rate induces U.S. consumers to buy
a. fewer domestic goods and fewer foreign goods.
b. more domestic goods and fewer foreign goods.
c. fewer domestic goods and more foreign goods.
d. more domestic goods and more foreign goods.
b
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In Figure 5-2, consumer’s surplus is measured by the area
A. ABC. B. OBCD. C. OACD. D. DCE.
In third-degree price discrimination, markets with a smaller price elasticity of demand are ________ responsive to price changes and are charged ________ prices than markets with a larger price elasticity of demand.
A) less; lower B) more; lower C) less; higher D) more; higher
In the long run, each firm in a competitive industry earns
a. zero accounting profits. b. zero economic profits. c. positive economic profits. d. positive, negative, or zero economic profits.
The economic development of a country is dependent on all of the following except
What will be an ideal response?