Other fundamental things being equal, a decrease in the exchange rate value of the domestic currency will make domestic goods
A. less competitive in the international markets.
B. less expensive in the domestic market.
C. more in demand internationally.
D. less expensive to produce.
Answer: C
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When the unemployment rate is greater than the natural unemployment rate, real GDP is
A) greater than full employment GDP. B) less than potential GDP. C) equal to potential GDP. D) greater than potential GDP. E) unrelated to potential GDP.
Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, which of the following is the most profitable price per minute?
A. $0.35 B. $0.40 C. $0.50 D. $0.60
The laws governing patents and copyrights
a. eliminate the need for firms to engage in research and development. b. are intended to serve private interests, not the public's interest. c. reduce fixed costs for firms that obtain them. d. None of the above is correct.
The salary of an athlete like Peyton Manning is in part a reward for his unique ability—something economists call a compensating differential.
Answer the following statement true (T) or false (F)