We find that the world price of sugar is 20 cents a pound, the U.S. does not trade internationally, and the U.S. equilibrium price of sugar is 30 cents a pound. If the U.S. begins to trade internationally, the price of sugar in the U.S
________ to the world price and U.S. consumers buy ________ sugar. A) falls; more
B) falls; less
C) rises; more
D) rises; less
E) falls; no
A
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Holding all else constant, an increase in U.S. real GDP will ________ the supply for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. decrease; increase B. decrease; decrease C. increase; increase D. increase; decrease
Which of the following statements about rent seeking is false?
A) A person is engaging in rent-seeking behavior when he uses the political process to acquire ownership of a resource that belongs to the public. B) If a firm can benefit from government intervention in the economy, it is more likely to spend resources attempting to secure this intervention than toward innovating its product to gain a competitive edge in the market. C) Because rent seeking redistributes society's resources, anyone engaging in such behavior is violating the law. D) Rent seeking often involves governments because governments transfer huge amounts of funds that economic agents must compete for.
Which of the following is a positive statement? a. The average high temperature in Miami, Florida in February is lower than the average high temperature in Chicago, Illinois. b. An increase in cigarette smoking will lead to a decrease in the likelihood of getting lung cancer
c. 30 minutes of exercise three or more times per week will decrease the occurrence of heart disease. d. all of the above
If a good is produced with technology that allows the best producer to supply every customer at a low cost and every customer in the market wants to enjoy the good supplied by the best producer, the best producer will be called a