Question 31 (3 points) If people in the United States buy more of a foreign good

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Question 31 (3 points)

If people in the United States buy more of a foreign good when its price falls, then

Question 31 options:

fixed exchange rates will make foreign exchange markets more efficient.

the supply curve for U.S. dollars will slope up.

the exchange rate will increase when there is inflation.

the demand curve for U.S. dollars will slope up.

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Question 32 (3 points)

Which of the following products is most likely to be sold in a monopolistically competitive market?

Question 32 options:

fast food

coal

electricity

wheat

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Question 33 (3 points)

The demand curve for a monopolistically competitive firm is

Question 33 options:

elastic because of product differentiation.

elastic because the products produced are homogeneous.

inelastic because of barriers to entry.

inelastic because of the profit maximizing behavior of the firm.

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Question 34 (3 points)

A market situation in which a large number of firms produce similar but not identical products is

Question 34 options:

monopolistic competition.

perfect competition.

a monopoly.

an oligopoly.

fixed exchange rates will make foreign exchange markets more efficient.

the supply curve for U.S. dollars will slope up.

the exchange rate will increase when there is inflation.

the demand curve for U.S. dollars will slope up.

Explanation / Answer

31) B is the correct answer

Explanation : when people buy more of foreign goods when prices fall the supply of dollar increases because more people are willing to exchange dollar for foreign goods and suppy of dollars increases .

32) The correct answer is A

Explanation : fast food market is characterised by differentiated products whereas other products are homogenous.

33) The correct answer is A

explanation : due to product differentiation , the demand curve is more elastic

34) The answer is A

explanation : In a monopolistic competition firms produce similar but not identical products . The products are differentiated .

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