An increase in the value of the U.S. dollar relative to the Japanese yen will
a. increase aggregate demand in the United States.
b. decrease aggregate supply in the United States.
c. increase aggregate demand in Japan.
d. increase aggregate supply in Japan.
c
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As part of its proposal to win the 2012 Olympics, London developed a carbon offset plan to reduce the Games' impact on the environment. In 2011, the organizers decided to drop this plan to reduce emissions. We can conclude that
A) the marginal cost of reducing emissions exceeded the marginal benefits of reducing emissions. B) the organizers are not making a rational decision. C) the organizers are ignoring a sunk cost. D) there are no incentives to reduce carbon emissions. E) it is difficult to calculate the cost of reducing emissions.
Maggie is trying to convince her friend Hannah to spend the morning at the beach instead of studying economics. Maggie’s argument is that the beach is free so will not cost Hannah anything to go. Maggie even volunteers to drive. Maggie’s argument
a. is correct; it is free to go to the beach. b. is forgetting Hannah’s opportunity cost of not being able to study. c. assumes Hannah has to eat at home or the beach so it will not cost Hannah additional money. d. is forgetting sunk costs.
Ceteris paribus, if average prices in the U.S. economy fall, then the
A. Foreign trade effect will lead to a lower quantity of U.S. output demanded. B. Cost effect will lead to a higher quantity of U.S. output demanded. C. Real balances effect will lead to a lower quantity of U.S. output demanded. D. Interest rate effect will lead to a higher quantity of U.S. output demanded.
In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________
A) of 100 percent; 20 percent B) above 50 percent; less than 1.5 percent C) of less than 10 percent; over 40 percent D) of 17 percent; 33 percent