A trade deficit means: A) the country has positive net savings, which it lends abroad. B) the country has negative net savings, which it lends abroad. C) the country has positive net savings, which it borrows from abroad. D) the country has negative net savings, which it borrows from abroad. ANSWER D
Date: September 10th, 2020
Assuming there is a rise in supply of copper, if the market for copper is allowed to adjust, the ultimate result will be: A) an increase in price and an increase in the quantity demanded. B) an increase in price and an increase in the quantity supplied. C) a decrease in price and an increase […]
Date: September 10th, 2020
Most of the empirical research on long-run costs suggests that the long-run average cost curve for most firms has a very pronounced U-shape. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Explain the essential difference between games in which moves are simultaneous and those in which moves are sequential. What will be an ideal response? ANSWER In a simultaneous-move game, each player has to decide what the other player’s strategy will be and then act based on that strategy. Thus, one player cannot manipulate the […]
Date: September 10th, 2020
A consumer is in equilibrium, that is, a consumer is maximizing her utility when marginal utility and price are equal for each of the goods the consumer purchases. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Domestic currency appreciation will: A) help domestic firms that export and hurt domestic firms that import. B) hurt domestic firms that import. C) hurt domestic firms that export and help domestic firms that import. D) help domestic firms that export. ANSWER C
Date: September 10th, 2020
The difference between nominal and real exchange rates is: A) absolute prices. B) foreign prices. C) domestic prices. D) ratio of domestic prices to foreign prices. ANSWER D
Date: September 10th, 2020
An index of the weighted exchange value of the U.S. dollar versus the currencies of a broad group of major U.S. trading partners is called: A) trade-weighted dollar. B) exchange-weighted dollar. C) dollarization. D) bilateral dollar. ANSWER A
Date: September 10th, 2020
Stabilization of business cycle fluctuations focuses on the long run. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Consideration of the minimum efficient scale of operation would suggest that, to minimize production costs, the market should be served by a large number of small firms when the LRAC curve slopes downward over the relevant range of output. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
