Refer to the information provided in Figure 34.4 below to answer the question(s) that follow.
Figure 34.4Refer to Figure 34.4. The demand and supply of pounds are S2 and D2. Which of the following can change the equilibrium exchange rate ($/pound) to $2.50 and the equilibrium quantity to 400 pounds?
A. an increase in the price level in Great Britain
B. a decrease in the price level in the United States
C. a sudden dislike of British products in the United States
D. an increase in income in the United States
Answer: D
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You have paid all expenses to travel to your favorite beach for a vacation. You made these payments early in order to receive a discount and all payments are nonrefundable. Unfortunately, a hurricane is likely to crash into the coast during your vacation dates. What should not be considered as you make a decision to take your trip or not?
A. The money that has already been spent on the trip B. The satisfaction you are likely to receive at the beach during a hurricane C. The best alternative use of your time if you do not take the trip D. The additional costs you didn’t anticipate while on the trip.
Assume that you know the following cost information about Fred's widget company: Its fixed cost is $9, and its total variable cost is $6 for 1 unit; $11 for 2; $ 15 for 3; 20 for 4; and 26 for 5 . Given the above information, a. the marginal cost of the third unit is greater than the marginal cost of the first unit. b. the marginal cost of the fourth unit is the same as the marginal cost of the
second unit. c. the average variable cost of four units is the same as for three units. d. both (b) and (c) are correct.
Which of the following will decrease aggregate demand?
a. exports rising faster than imports b. exports falling faster than imports c. exports rising the same amount as imports d. exports rising and imports falling
Of the top-10 U.S. multinationals, the majority are in which of the following two industries?
a. oil and automobiles b. banking and energy c. services and fast food d. clothing and entertainment e. computers and soft drinks