The city of Burlington is a very popular town for tourists to visit in the summer. We would expect the:
A. demand for normal goods to increase each summer.
B. demand for normal goods to decrease each summer.
C. prices of all normal goods to decrease each summer.
D. demand curve for normal goods to shift to the left.
A. demand for normal goods to increase each summer.
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The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, the firms' surplus equals ________
A) $800 B) $900 C) $1,800 D) $400 E) $200
Hedge funds require large minimum investments ranging from ________ to ________ or more
A) $100,000; $1 million B) $1000; $10,000 C) $100; $1000 D) $$10,000; $25,000
On behalf of your firm, you make frequent trips to Tokyo. You notice that you always have to pay more dollars to get your hair cut than you pay in the U.S. This observation is
a. consistent with purchasing-power parity if prices in Japan are rising more rapidly than prices in the United States. b. consistent with purchasing-power parity if prices in Japan are rising less rapidly than prices in the United States. c. inconsistent with purchasing-power parity, but might be explained by limited opportunities for arbitrage in haircuts across international borders. d. None of the above is correct.
An increase in interest rate will ______ the quantity of money demanded for transactions and ______ the quantity of money demanded for speculation.
a) increase; increase b) increase; decrease c) decrease; increase d) decrease; decrease