If the dollar appreciates against the Mexican peso
A) Mexican imports to the U.S. become more expensive.
B) U.S. exports to Mexico become less expensive.
C) U.S. exports to Mexico become more expensive.
D) The value of Mexican imports to the United States does not change.
Answer: C
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Figure 1-2
Identify the slope of the two curves A and B in Figure 1-2.
A. A—zero, B—one. B. A—one, B—zero. C. A—one, B—different at different points. D. A—different at different points, B—zero.
If a decrease in income leads to a decrease in the demand for ice cream, then ice cream is
A) a complement. B) a necessity. C) a normal good. D) a neutral good.
The general public disapproved of key features of the 1996 welfare legislation
Indicate whether the statement is true or false
According to the Lucas supply function, if a firm mistakenly perceives that all prices are going up because its own output price is going up, it will
A. increase its production. B. keep its production level constant. C. increase expectations regarding its own output price. D. decrease its production.