The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. Currently 10 units are imported. The loss from shifting production from foreign to domestic producers equals

A depreciation of the U.S. dollar on the foreign exchange market will

a. make U.S. exports cheaper to foreigners. b. make imports less expensive for U.S. consumers. c. make U.S. exports more expensive for foreign consumers. d. probably cause the United States to run a capital account surplus in the long run.

Passive policy advocates believe that uncertain lags and ignorance about how the economy works prevent policy makers from accurately determining and effectively implementing the appropriate active policy

Indicate whether the statement is true or false