With time, an appreciation in the value of the nation's currency in the foreign exchange market would cause
a. the nation's imports to increase and exports to decline.
b. the nation's exports to increase and imports to decline.
c. both imports and exports to decline.
d. both imports and exports to rise.
A
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Both minivan sales and birth rates are on the rise. The conclusion that minivans cause people to have children is an example of making the mistake of:
A. extrapolation. B. omitted variables. C. correlation without causation. D. reverse causality.
Assume the price of good X increases. As a result, your real income decreases and you decrease the quantity of good X purchased each month. This is an example of the:
A. income effect. B. consumer price effect. C. revenue effect. D. substitution effect.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from
A. B to A. B. C to D. C. B to D. D. A to C.
According to the menu cost theory, firms will be slow in changing their prices because
A. frequent price changes would be a sign of monopolistic behavior. B. demand for their product would fall because consumers would purchase goods from firms that had not raised their prices. C. if prices changed frequently, individuals would reduce their demand for that good because of uncertainty. D. the cost of changing the price might exceed the additional revenue the price change would generate.