What is the impact on the foreign exchange rate?
a. The euro depreciates in value compared to the U.S. dollar.
b. The dollar price of euros increases from $1.50 to $1.90.
c. The euro can buy a greater number of units of dollars than before.
d. The dollar price of euros decreases from $1.50 to $1.00.
a. The euro depreciates in value compared to the U.S. dollar.
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Assume that the demand curve for oranges is downward-sloping and the supply curve for oranges is upward-sloping. If the government imposes an excise tax of 10¢ per orange, then the total price (including the tax) that demanders must pay for an orange
a. remains unchanged. b. rises by less than 10¢ per orange. c. rises by exactly 10¢ per orange. d. rises by more than 10¢ per orange.
Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
Prior-to-trade (autarky) consumer surplus equals area(s)
A. A + B + C. B. E + F. C. A + B. D. A.
The new growth theory was developed by ________ and proposes that ________
A) Thomas Malthus; increases in population drive wages to their subsistence level B) Ben Bernanke; changes in the money supply drive economic growth C) Paul Romer; the desire for profits drives increases in real GDP per person D) Adam Smith; markets will determine the appropriate economic growth rate E) Robert Solow; increases in technology growth are responsible for economic growth
It is difficult to explain how firms behave in an oligopoly because
a. they produce differentiated products b. there are many suppliers and few buyers c. they do not attempt to maximize profits d. each takes into account the behavior of other firms when making pricing decisions e. there are no barriers to entry or exit