Under a flexible exchange rate system, which one of the following would not directly affect the exchange rate?
a. a change in income
b. the relative inflation rates in two countries
c. the salary of the president of the United States
d. a change in capital flows
e. a change in the level of exports or imports
C
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Use the above figure. The profit-maximizing output and price is
A) 600 and $16, respectively. B) 600 and $10, respectively. C) 600 and $8, respectively. D) 800 and $10, respectively.
The crux of the problem of pollution is
A) a poorly run Environmental Protection Agency. B) greed on the part of consumers. C) greed on the part of producers. D) poorly defined property rights are expensive to enforce.
In order to lessen the monitoring problems and opportunistic behavior of a franchisor and a franchisee, franchise contracts:
a. create provisions for high liquidated damages. b. are complete in all respect. c. have similar fixed charge and royalty arrangements. d. include certain flexible clauses.
Refer to the following graph.
Marginal utility is:
A. negative between A and B. B. negative between B and C. C. negative between C and D. D. not negative anywhere along the total utility curve.