If over the next few years inflation is higher in Mexico than in the U.S., then according to purchasing-power parity which of the following should rise?
a. the U.S. real exchange rate but not the U.S. nominal exchange rate
b. the U.S. nominal exchange rate but not the U.S. real exchange rate
c. the U.S. real exchange rate but not the U.S. nominal exchange rate
d. neither the U.S. real nor the U.S. nominal exchange rate
b
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In a Dutch auction, the higher the bid, the ________ the surplus and the ________ chance of winning
A) higher; lower B) lower; higher C) higher; higher D) lower; lower
The long-run exit rule is to exit the industry if:
A. P > AVC. B. P < AVC. C. P > ATC. D. P < ATC.
For a competitive market,
a. a seller can always increase her profit by raising the price of her product. b. if a seller charges more than the going price, buyers will go elsewhere to make their purchases. c. a seller often charges less than the going price to increase sales and profit. d. a single buyer can influence the price of the product but only when purchasing from several sellers in a short period of time.
Which of the following achieves the efficient use of a common resource?
a) property rights, individual transferable quotas, and subsidies b) individual transferable quotas and copyrights c) property rights, quotas, and individuals transferable quotas d) property rights, quotas, and subsidies