If the exchange rate between the United States and Mexico changes from $1 = 100 pesos to $1 = 5 pesos, ceteris paribus
A. U.S. imports from Mexico increase.
B. U.S. exports to Mexico increase.
C. the trade deficit in the United States increases.
D. Mexican exports to the United States increase.
Answer: B
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To analyze aggregate productivity, economists typically assume ________
A) that the hours each person works varies with the wage rate B) that all of the capital and labor in the economy are fully utilized C) that output can increase only if inputs have become more productive D) all of the above E) none of the above
If an economy is operating on its production possibilities curve, it is:
A) efficient and fully employed. B) fully employed but not necessarily efficient. C) efficiently producing but not necessarily fully employed. D) inevitably going to grow in the future.
All else equal, if Canada raises its interest rates,
A) the dollar depreciates. B) the U.S. demand for Canadian dollars decreases. C) the Canadian supply of Canadian dollars increases. D) the Canadian dollar will depreciate.
Alex's production is worth $60, Harry's is worth $40, Rob's is worth $40, and Julia's is worth $55 . They decide to combine their resources and produce together. For this to be a superadditive game, which of the following conditions must hold?
a. They should be able to produce more in groups of two than what they can produce together. b. Their combined production must exceed the total they can individually produce. c. Their resources must be perfect substitutes. d. Their resources must be perfect complements.