Which of the following would cause the real exchange rate of the U.S. dollar to appreciate?
a. the U.S. government budget deficit decreases
b. capital flight from the U.S.
c. the U.S. imposes import quotas
d. None of the above is correct.
c
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A decrease in demand and an increase in supply will lead to
A) an unambiguous decrease in quantity, but the effect on price is indeterminate. B) an unambiguous decrease in price, but the effect on quantity is indeterminate. C) unambiguous decreases in both price and quantity. D) unambiguous increases in both price and quantity.
When optimizing in levels, if the ________ exceeds the ________, Project A is chosen over Project B
A) marginal benefits of Project B; marginal benefits of Project A B) net benefits of Project A; net benefits of Project B C) total benefits of Project A; total benefits of Project B D) marginal cost of Project A; marginal costs of Project B
The optimal currency area involves a trade-off of reducing transaction costs but the inability to use changes in exchange rates to help ailing regions. If the US, Canada, and Mexico had one single currency (the Peso-Dollar) we would tend to see all of the following EXCEPT:
a. Even more intraregional trade of goods across the three countries. b. Lower transaction costs of trading within North America. c. A greater difficulty in helping Mexico as you can no longer deflate the Mexican peso. d. Less migration of workers across the three countries. e. An elimination of correlated macroeconomic shocks across the countries.
Total cost of production is the sum of total variable cost and total fixed cost. If the total fixed cost alone decreases:
A. the average total cost curve shifts upward at all output levels. B. the marginal cost curve shifts downward at all output levels. C. the vertical distance between the average total cost curve and the average variable cost curve decreases at all output levels. D. the average variable cost curve shifts downward at all output levels.