Which of the following events would benefit American consumers?
A. The Chinese economy starts to grow more slowly than the U.S. economy.
B. South Korea begins to subsidize its auto exports.
C. The U.S. dollar experiences depreciation against the euro.
D. The U.S. government strengthens trade barriers against foreign imports.
Answer: B
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Figure 9.5Figure 9.5 shows the short-run and long-run effects of an increase in demand of an industry. The market is in equilibrium at point A, where 100 identical firms produce 6 units of a product per hour. Suppose that the market demand curve shifts to the right. Why is the short-run supply curve steeper than the long-run supply curve?
A. Because production facilities are fixed in the short run. B. Because each firm experiences diminishing returns in the short run. C. Because production becomes costlier as firms squeeze more output from the existing production facilities. D. All of these are correct.
Suppose that you borrow $10,000 for two years, and at the end of the second year, you must repay $11,664. The interest rate is
A. 8.0 percent. B. 7.0 percent. C. 9.0 percent. D. 16.7 percent.
A monopolist is producing at an output level at which ATC = $55 P = $65, MC = $45, and MR = $35. We can conclude that
A. economic profit cannot be increased. B. economic profit could be increased by producing less. C. economic profit could be increased by producing more. D. the firm is earning $10 in economic profits.
Most Americans believe that anyone who is poor can get rich by working hard
Indicate whether the statement is true or false