In the specific factors model, a 5% increase in the price of food accompanied by a 5% increase in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in
the welfare of the fixed factor in the production of cloth. A) no change; no change; no change
B) an increase; an increase; an increase
C) a decrease; an increase; an increase
D) an increase; a decrease; a decrease
E) a decrease; a decrease; a decrease
A
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Periods of price deflation, such as the Great Depression, are characterized by
A) low nominal rates but high real rates of interest. B) low nominal and real interest rates. C) real rates of interest lower than the nominal rate of interest. D) high nominal and real rates of interest.
Which of the following was an element of the New Deal?
A. Wage and price controls B. Unemployment insurance and bank deposit insurance C. Regulation of the stock market D. Unemployment insurance, bank deposit insurance, and regulation of the stock market, but not wage and price controls
Monopolistic firms that practice international dumping:
a. suffer losses on their sales in foreign markets. b. suffer losses on their sales in domestic markets. c. maximize their monopoly profits. d. are subject to antidumping taxes in their home countries.
My roommate ________. This is an example of an external benefit.
A. smokes cigars in the kitchen whenever I make dinner B. cleans up after his dog and keeps it from eating my ferrets C. sings (badly) in my presence D. plays the drums whenever I am home