If in late 2016 100 U.S. dollars exchanged for 118 euros and in mid-2017 100 U.S. dollars exchanged for 127 euros, then:
A. American goods became more expensive to Americans.
B. European goods became more expensive to Americans.
C. the dollar appreciated relative to the euro.
D. the euro appreciated relative to the dollar.
Answer: C
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Rent controls unintentionally create
A) scarcity of rental units. B) surpluses of rental units. C) shortages of rental units. D) market-clearing outcomes in the apartment rental market.
Legislation setting high minimum wage rates benefits
A) many people receiving wages far above the minimum by reducing competition from unskilled workers. B) no group in the economy, but is nonetheless widely supported out of ignorance. C) only people who were previously receiving less than the legal minimum. D) primarily teenagers and unskilled workers. E) the whole economy by pushing up average income.
For prices above the minimum average variable cost, a perfectly competitive firm's supply curve is
A) horizontal at the market price. B) vertical at zero output. C) the same as its marginal cost curve. D) the same as its average variable cost curve.
Marginal cost can be determined best by observing changes in
a. average total cost. b. total variable cost. c. total fixed cost. d. total cost/marginal product.