Suppose the supply of dollars increased from S1 to S2 in Figure 36.3. As a result of this change,
A. U.S. computer exports to Switzerland will be lower-priced.
B. The Swiss franc will lose value worldwide.
C. Swiss chocolate imports to the United States will be lower-priced.
D. A trade surplus will be created in Switzerland.
Answer: A
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In the circular flow model of an economy, households
A) receive income from buyers of goods and services. B) receive income from the sale of factors in the goods markets. C) pay firms for the use of their factors. D) receive income from producers for the use of factors in the factor markets.
Efficient production of a public good requires a. that individuals pay for such goods according to benefits received
b. that each individual's MRS be equal to the RPT of public goods for private goods. c. that the sum of individuals' MRSs be equal to the RPT of public goods for private goods. d. that governments produce at the low point of the average cost curve for the public good.