Under the current managed float exchange rate regime, countries with balance of payments ________ frequently do not want to see their currencies ________ because it makes foreign goods more expensive for domestic consumers and can stimulate inflation
. A) surpluses; depreciate
B) deficits; depreciate
C) surpluses; appreciate
D) deficits; appreciate
B
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The above table shows the total product schedule for the campus book store. If each employee is paid $6 per hour and there are no other variable costs, then at what level of books sold per hour does the marginal cost begin to increase?
A) 41 books per hour B) 59 books per hour C) 73 books per hour D) 90 books per hour
Ford Motor Company was one of the first major companies to adopt a wage structure that is comparable to efficiency wages. What was the outcome of Ford's experiment with efficiency wages?
A) Lower labor force turnover B) Higher labor productivity C) Less absenteeism D) all of the above
Suppose you drink more tea because the price of coffee has increased. Which of the following best explains your action?
a. the law of supply b. tea and coffee are complements c. the substitution effect d. the income effect e. your nominal income has increased
Most monetarists favor:
A. frequent changes in the growth rate of the money supply to avoid inflation. B. placing the Federal Reserve under the Treasury. C. a steady, gradual shrinkage of the money supply. D. a constant increase in the money supply year after year equal to the potential annual growth rate in real GDP.