Suppose the U.S. price level rose at the same time the Mexican price level remained constant. Which of the following would occur?
a. The demand for pesos would increase.
b. The supply of pesos would decrease.
c. The supply of pesos would increase.
d. The demand for pesos would decrease.
e. The supply of pesos would stay constant.
A
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Lou buys a Star Wars: The Force Awakens poster at a garage sale for $30 and resells it on eBay to Kyle for $60. Which of the following statements is true?
A) The transaction is economically inefficient. B) The transaction has made Lou and Kyle better off. C) The transaction has made Lou better off and Kyle worse off. D) It is not possible for Kyle to enjoy any consumer surplus from this transaction.
Refer to Figure 24-2. Ceteris paribus, a decrease in productivity would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.