The extent to which output responds to all inputs is referred to as

Your friend steals towels from hotels. She then tells you she steals because "many people steal, so hotels already figure the cost of the stolen towels into the hotel bill of all customers." From the economic point of view, your friend's logic i

A) correct, because what's fair is fair. B) correct, because economics champions such selfish behavior. C) impeccable. D) incorrect, because it suggests that cost determines price. E) incorrect, because it suggests that ethical positions can be derived from economic facts.

Interest rates in the United States rise relative to interest rates in other countries. As a result, in the foreign exchange market

A) the supply curve of dollars shifts leftward. B) the supply curve of dollars shifts rightward. C) the demand curve for dollars shifts leftward. D) there is an upward movement along the supply curve of dollars.