Which of the following results if the U.S. removes an import quota on computer components?
a. U.S. exports and U.S. imports both increase
b. U.S. exports increase but U.S. imports are unchanged
c. U.S. imports increase but U.S. exports are unchanged
d. None of the above are correct
a
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A monopolistic competitor earns a profit of $1,800 by selling 900 units of output at a price of $15 per unit. This implies its average cost of production is _____
a. $25 b. $15 c. $13 d. $2
If the United States is viewed by foreigners as a great nation in which to invest, generating a large inflow of foreign investment, this will cause the United States to run a
a. deficit on the current account. b. surplus on the current account. c. deficit on the capital account. d. deficit on the official reserve account.
The most responsive to interest rate changes is the _______ demand for money.
A. transactions B. precautionary C. speculative
Which of the following events, ceteris paribus, would decrease the short-run equilibrium exchange rate for the euro?
a. There is an increase in average U.S. incomes. b. European tariffs decline on imports to Europe from the United States. c. There is an increase in U.S. tastes for European goods. d. U.S. tariffs decline on imports to the United States from Europe.