How does the effect of changes in foreign demand compare to the effect of changes in the foreign exchange rate?
a. Changes in foreign demand cause a shift in the aggregate demand curve, whereas changes in the foreign exchange rate cause movement along the curve.
b. Changes in foreign demand shift the aggregate demand curve rightward, whereas changes in the foreign exchange rate shift the curve leftward.
c. Changes in foreign demand cause movement along the aggregate demand curve, whereas changes in the foreign exchange rate cause curve shifts.
d. Changes in foreign demand and changes in the foreign exchange rate can both shift the aggregate demand curve.
d. Changes in foreign demand and changes in the foreign exchange rate can both shift the aggregate demand curve.
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Any event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity.
Answer the following statement true (T) or false (F)
Which of the following is not an explicit cost?
A) taxes B) rent C) wages D) opportunity cost of using an owner's savings
Which of the following best describes private enterprise?
a. The means of production (resources and businesses) are owned and operated by government. b. The means of production (resources and businesses) are owned and operated by private individuals or groups of private individuals. c. Economic decisions are determined by individuals. d. Economic decisions are determined by government.
Since the Internet became a common tool for business, employees at Plain Truth Advertising have maintained a semi-secret website where wages of employees are published and comparative salaries of friends at other advertising agencies are also published. Employees at Plain Truth have noticed that wage dispersion of similarly ranked employees has shrunk dramatically in the past five years. What happened?
What will be an ideal response?