Flexible exchange rates are determined by
A) the government of the exporting country.
B) the government of the importing country.
C) the forces of supply and demand.
D) the IMF.
Answer: C
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Steven Levitt and Chad Syverson compared home sales in which real estate agents are hired by others to sell a home to instances in which an agent sells his or her own home. They found that homes owned by real estate agents sold for 3
7 percent more than other houses and stayed on the market 9.5 days longer, everything else equal. How could moral hazard explain these results?
Which of the following is FALSE?
A. Engaging in predatory pricing is always more profitable than permitting existing firms to remain in the market. B. Being the first mover is always best. C. It is always more profitable to engage in limit pricing than to permit entry. D. All of the statements associated with this question are false.
Imposing a tariff on a good leads to a ________ in the price of the product and ________ in imports
A) rise; no change B) fall; a decrease C) rise; an increase D) fall; an increase E) rise; a decrease
A country's net welfare will increase when it imposes a tariff on a foreign monopolist if its:
a. terms-of-trade gain is greater than its increase in tariff revenues. b. terms-of-trade gain is less than its increase in tariff revenues. c. terms-of-trade gain is greater than its lost consumer surplus. d. increase in tariff revenues is greater than its lost consumer surplus.