Last week, six Swedish kronor could purchase one U.S. dollar. This week, it takes eight Swedish kronor to purchase one U.S. dollar. This change in the value of the dollar will ________ exports from the United States to Sweden and ________ U.S
aggregate demand.
A) increase; increase B) decrease; increase C) increase; decrease D) decrease; decrease
D
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In the long run, a perfectly competitive firm can make an economic profit because its marginal cost equals its average total cost
Indicate whether the statement is true or false
An economic system is
A) the universe of all resources. B) a way to create new resources. C) a mechanism to allocate scarce resources. D) an organization that generates profits.
If the marginal product of labor increases because of a shift of the MP curve, that will likely cause
a. an increase in the price of output produced by labor b. an increase in labor demand c. an increase in labor supply d. a fall in the wage paid to labor e. a fall in the number of workers employed
Answer the following statements true (T) or false (F)
1. When there are two candidates on one side of the issues and one candidate on the other side of the issues, it can “split the vote” between supporters of the side with two candidates, handing the election to someone who does not have the support of the majority of voters. 2. A special interest group can pressure legislators to enact public policies that do not benefit society as a whole. 3. Special interests are more likely to arise from a group that is relatively anonymous, rather than from a group where there is already a lot of public scrutiny. 4. The median voter theory argues that politicians will try to match policies to what pleases the majority of voter preferences. 5. The theory of comparative advantage explains that the gains from international trade result from pursuing comparative advantage and producing at a lower opportunity cost.