Choose the letter of the diagram in Figure 36.2 that represents the shift in the foreign exchange market for dollars given the following situation, ceteris paribus: A sudden, unexpected surge in inflation in the United States causes reduced purchases of U.S. goods by foreigners.
A. a.
B. b.
C. c.
D. d.
Answer: C
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________ refers to the overall political and financial situation of a country, and the extent to which these conditions may affect the ability of a country to repay its debts
A) Debt-rescheduling B) IMF conditionality C) Country risk D) International debt
Table 7-6 Number of ovens 2 2 2 2 2 2 2 2 Labor hours used 1 2 3 4 5 6 7 8 Loaves of bread produced 20 34 55 70 82 91 94 92 Table 7-6 shows a baker’s daily production relationship for bread. Diminishing returns to labor begin when the baker goes from
A. one hour of labor to two hours of labor. B. three hours of labor to four hours of labor. C. six hours of labor to seven hours of labor. D. seven hours of labor to eight hours of labor.
If a profit-maximizing firm shuts down in the short run, it must be true that before the shutdown, at all positive output levels,
a. average total cost was less than average variable cost b. fixed cost was greater than total revenue c. variable cost was greater than total revenue d. profit was zero e. total cost plus total revenue was less than profit
If the price elasticity of supply is elastic, which of the following could be a possible value of the elasticity?
A. 3 B. 1 C. 0.3 D. 0