Those who think that a popular investment is necessarily a good investment often find themselves earning low returns.

A nominal appreciation of the Japanese yen (against all currencies) indicates that

A) the yen price of the U.S. dollar has increased. B) the yen price of the U.K. pound has increased. C) the number of units of foreign currency that one can obtain with one yen has increased. D) all of the above

The owner of a perfectly competitive firm that is earning economic losses in the short run

A) should alter the rate of output in order to increase profitability. B) should cut his own salary in order to reach the break-even point. C) is actually losing more than he thinks because not all of the implicit costs have been considered. D) is earning less than he would if he worked for someone else.