Refer to the diagram. The equilibrium dollar price of euros is:
A. $0.625.
B. $1.20.
C. $1.60.
D. $2.00.
C. $1.60.
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The First Theorem of Welfare Economics states that:
a. only Walrasian equilibria can be Pareto optimal. b. all Walrasian equilibria are Pareto optimal. c. a Walrasian equilibrium price vector can always be found. d. some Walrasian equilibria may be unfair.
A decrease in supply will cause a(n)
a. increase in demand b. decrease in demand c. increase in quantity demanded d. decrease in quantity demanded e. decrease in equilibrium price
Cross elasticity of demand measures how sensitive purchases of a specific product are to changes in:
A. the price of some other product. B. the price of that same product. C. income. D. the general price level.
In Table 17.4, 
A. Brazil has an absolute advantage in both goods but a comparative advantage in lumber only. B. the United States has an absolute advantage in both goods but a comparative advantage in cars only. C. the United States has an absolute and comparative advantage in Cars while, Brazil has an absolute and comparative advantage in lumber. D. the United States has an absolute and comparative advantage in both goods.