Using Figure 8.2, a decrease in real output resulting from the profit effect would be depicted as a movement from point

Fred enjoys smoking cigars, but his wife Wilma feels ill whenever she is around cigar smoke. Use the Coase theorem to explain how this problem could be solved without government involvement

What will be an ideal response?

A Big Mac costs $4.79 in the United States and 9.6 zlotys in Poland. If the exchange rate is 3 zlotys per dollar, purchasing power parity predicts that

A) the dollar will appreciate as the demand for dollars rises in the long run. B) the dollar will depreciate as the demand for dollars falls in the long run. C) the dollar will appreciate as the supply of dollars falls in the long run. D) the dollar will depreciate as the supply of dollars rises in the long run.