Which of the following statements is correct, when the exchange rate changes from €2/$ to €1.5/$?
a. The euro (€) depreciates.
b. The dollar ($) appreciates.
c. Both the euro and the dollar appreciate.
d. Both the euro and the dollar depreciate.
e. The euro appreciates and the dollar depreciates.
.E
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Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Quick Buck cheats by reducing its price to $1 while Pushy Sales continues to comply with the collusive agreement, then Quick Buck will sell ________ units and Pushy Sales will sell ________ units.
A. 3,000; 1,000 B. 0; 3,000 C. 2,000; 1,000 D. 3,000; 0
To keep the price at the level set by a price support, the government must
A) buy some of the good. B) sell some of the good. C) receive a subsidy from the producers. D) insure that imports are readily available. E) be careful to always set the price support below the equilibrium price.
In the economic way of thinking, "outsourcing" is another application of
A) the entrepreneurial attempt to buy low, and sell high. B) voluntary exchange. C) the coordination of plans across different regions. D) the discovery of people's comparative advantage. E) all of the above.
A advantage of using swaps to hedge interest-rate risk is that swaps
A) are less costly than futures. B) can be written for long horizons. C) are not subject to default risk. D) are more liquid than futures.