11.) Suppose there are two countries, the United Kingdom and Japan. The UK interest rate is 19% while Japan's interest rate is 12%. Before the exchange rate adjusts, which of the following will occur? A. There will be a surplus of yen in the UK B. There will be a shortage of yen in the UK C. There will be a surplus of pounds in Japan D. There will be no effect on the exchange rate E. The interest rate in the UK will fall 12% 12.) Suppose there are 3 industries competitive economy (X), (Y) and (Z). You notice that marginal firms in industry (X) and industry (Z) are exiting, and entering industry (Y). Also, assume all the factors of production used in (X), (Y), and (Z) are perfectly specialized economic goods. Which of the following could we infer? A. industry (Y) earns less than the general rate of return on investment B. Industries (X) and (Z) do not earn accounting profits C. The prices for the factors of production in industry (Y) will increase D. The prices for the factors of production in industry (X) and (Z) will increase E. None of the above is correct 13.) The economic approach to solving environmental problems such as pollution and endangered species does not require which of the following? A. Tempering personal need with more caring for nature. B. Eliminating environmental prisoner's dilemmas C. Privatizing communal resources D. Taxing polluters + m/files/exam-hg83s43b2k/ Final for ECON 103 with Professor Rustici at GMU: Koofers E. Changing the structure of legal rules