If the dollar falls by 20% against the euro and rises by 10% against the yen, which of the following values for European and Japanese trade with the United States are consistent with a 10% increase in the effective exchange rate of the United States?

The concept of "the invisible hand" suggests that to attain efficiency, the government should

A) guide economic activity. B) set prices. C) leave prices and output decisions to the competitive market. D) regulate all production decisions, but not price decisions. E) make sure that a command system is used to allocate resources.

If marginal revenue and marginal cost are not equal, profit can be maximized by

a. increasing output if MR > MC. b. decreasing output if MC > MR. c. moving to the output where the slopes of TR and TC are equal. d. All of the above are correct.