From the perspective of the United States, an increase in the nominal exchange rate will cause which of the following?
A) the dollar becomes less expensive to foreigners
B) foreign goods are more expensive to Americans
C) foreign currency is more expensive to Americans
D) American goods are more expensive to foreigners
E) none of the above
D
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Is it more efficient for a group of musicians to perform a show "unplugged" (with acoustic instruments) or with state-of-the-art electric instruments?
A) Unplugged is more efficient because the instruments are considerably less expensive to operate. B) It depends on what the musicians are trying to accomplish. C) The use of electric instruments is more efficient because acoustic instruments have become more expensive in recent years. D) It depends exclusively on the relative ratios of energy output to energy input in each instrument class.
If the market for bottled water is perfectly competitive, how will the following aspects differ in the short run and in the long run?
a. Use of inputs b. Market supply curve of bottled water when firms have identical cost structures c. Profitability of firms with identical cost structures d. Condition to stop production e. Average cost curves of a firm f. Number of firms
Demand-pull inflation is associated with a(n)
a. decrease in the aggregate supply curve b. increase in the aggregate supply curve c. increase in the aggregate demand curve d. decrease in the aggregate demand curve e. decline in the availability of a productive resource
Steel producers lobbying to keep imports out is an example of:
A. objective cost-benefit analysis. B. rational ignorance. C. rent-seeking behavior. D. corruption.