The purchasing power parity predicts that if US price level rises relative to the Mexico price level, then
a. Dollar value will rise relative to the peso
b. Dollar value will fall relative to the peso
c. There is no effect on either currency
d. PPP predicts price level will normalize in the long-run
b
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A natural monopoly is defined as
A) a market in which competition and entry are restricted by the granting of a government license. B) an industry in which economies of scale allow one firm to supply the entire market at the lowest possible cost. C) a market in which competition and entry are restricted by the granting of a patent. D) any market where one firm constitutes the entire industry.
The theory that most economists rely on to explain inflation is called the __________
Fill in the blank(s) with correct word
An electrician licensing program in the state of North Carolina requires each electrician to obtain a license and renew it each year. Which of the following is a result of having the licensing program in North Carolina?
A. a decrease in total surplus B. excess demand for electrical service C. an increase in the quality of electrician D. All of these are a result of the licensing program.
A firm has the following production relationship between labor and output, for a fixed capital stock.
According to the above table, at what usage of labor does diminishing marginal product begin?
A. 1 B. 2 C. 4 D. 5