If the U.S. interest rate falls relative to the British interest rate,
a. the U.S. demand for pounds will not change
b. the U.S. demand for pounds will decrease
c. the U.S. demand for pounds will increase
d. there will be a rightward movement along the U.S. demand curve for pounds
e. there will be a leftward movement along the U.S. demand curve for pounds
C
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Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Based on these data,
A) Cindy has a comparative advantage at producing tacos. B) Scott has a comparative advantage at producing tacos. C) Cindy and Scott have the same comparative advantage in producing tacos. D) neither Cindy nor Scott has a comparative advantage in producing tacos. E) Cindy and Scott have the same comparative advantage in producing pizzas.
Which of the following firms could raise prices and expect an increase in revenues?
(A) A firm whose product has an elasticity of 3.1. (B) A firm whose product has an elasticity of 1. (C) A firm whose product has an elasticity of 0.31. (D) All firms regardless of the elasticity of their products.