A weaker peso, relative to the US dollar, causes the demand for US exports to Mexico to______ and the demand for US imports from Mexico to______
a. Increase; Decrease
b. Decrease; Increase
c. Increase; Increase
d. Decrease; Decrease
QUESTION 2An example of moral hazard is
a. people drive as carefully in icy conditions with antilock brakes as without
b. people drive less safely with more airbags than without
c. football players avoid 'spearing' with their heads even with safer helmets
d. people read the medicine warnings as carefully when self-medicating as with a doctor's prescription
QUESTION 3Fixed costs are
a. costs that vary with output
b. equal marginal costs
c. costs that do not vary with output
d. equal to total costs
QUESTION 4Currency devaluation _______import consumers because______
a. Helps; imports are more expensive
b. Hurts; imports are more expensive
c. Helps; imports are less expensive
d. Hurts; imports are less expensive
QUESTION 5An example of moral hazard is
a. people drive less carefully in icy conditions with antilock brakes than without
b. people drive as safely with more airbags as without
c. football players avoid 'spearing' with their heads even with safer helmets
d. people read the medicine warnings as carefully when self-medicating as with a doctor's prescription
QUESTION 6Susan can bake 200 cookies in an hour or watch her favorite TV show. If she chooses to watch her show, her opportunity cost is
a. 200 cookies
b. 100 cookies
c. 150 cookies
d. Need more information
QUESTION 7Currency devaluation ______export producers because_______
a. Helps; exports are more expensive
b. Hurts; exports are more expensive
c. Helps; exports are less expensive
d. Hurts; exports are less expensive
QUESTION 8US law was recently changed so that some airplane manufacturers are immune from liability from accidents involving their decades old aircraft, laying all the responsibility on the pilots. As a result
a. accident rates fell due to less adverse selection
b. accident rates fell due to less moral hazard
c. accident rates rose due to less adverse selection
d. accident rates rose due to less moral hazard
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