Imagine that there are only two nations in the world, the United States and Mexico. If Americans buy more goods made in Mexico, other things constant, the
a. U.S. demand curve for Mexican pesos will shift rightward
b. U.S. demand curve for Mexican pesos will shift leftward
c. U.S. supply curve of Mexican pesos will shift leftward
d. U.S. supply curve of Mexican pesos will shift rightward
e. U.S. supply curve of Mexican pesos will shift upward
A
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When compared to exchange systems that rely on money, disadvantages of the barter system include
A) the requirement of a double coincidence of wants. B) lowering the cost of exchanging goods over time. C) lowering the cost of exchange to those who would specialize. D) encouraging specialization and the division of labor.
In setting the price of its product, a monopolistic competitor sets the price equal to its marginal cost plus an amount called the
A) markup. B) profit. C) rent. D) menu cost.