If the implied exchange rate between Big Mac prices in the United States and Poland is 2.13 zlotys per dollar, but the actual exchange rate between the United States and Poland is 3
16 zlotys per dollar, which of the following would you expect to see?
A) an increase in the demand for dollars B) an appreciation of the dollar
C) an increase in the demand for zlotys D) Both A and C are correct.
C
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Answer the following statement(s) true (T) or false (F)
1. We know that the producer's surplus accruing to a simple monopoly firm must be greater than operating in a competitive market, else firms would not act as monopolists. 2. In both the short-run and the long-run, a monopoly is guaranteed to earn positive profits. 3. An excise tax will increase the deadweight loss due to monopoly, but an excise subsidy can reduce the deadweight loss. 4. An unregulated, profit maximizing monopoly will never set a price where demand is inelastic. 5. The large increase in the price of oil and in the total revenues and profits of the US oil industry in the 1990's are evidence that it was exercising monopoly power.
Refer to the graph shown which shows total product. At point B:
A. marginal product is at its minimum. B. marginal product is zero. C. marginal product is at its maximum. D. average product is at its maximum.
Wild animals are likely to be
A. endangered species. B. externalities. C. private property. D. all of these.
Discuss the unequal burden of unemployment for different demographic groups in the United States.
What will be an ideal response?