Suppose the market price of zinc doubles. Which of the following scenarios is most likely?
A) The demand for zinc miners will increase, raising the market wage rate.
B) The demand for zinc miners will decrease, reducing the market wage rate.
C) The demand for zinc will increase, raising the market price further.
D) The demand for zinc miners will decrease, reducing the market price back to its original price.
A
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Which of the following is a defining characteristic of all perfectly competitive markets?
A. Consumers display strong brand loyalty. B. All firms sell the same standardized product. C. Each firm in the market faces a perfectly inelastic demand curve. D. The market demand curve is perfectly elastic.
Private investment fluctuates ________, which supports those economists who advocate policy ________
A) procyclically, rules B) procyclically, activism C) countercyclically, rules D) countercyclically, activism
Consider the current peso/dollar exchange rate is 100 pesos per dollar and the current inflation rate in Mexico and the U.S. is 3 percent in each country. Assuming purchasing power parity, what will the exchange rate be if the inflation rate increases to 5 percent in Mexico and falls to 2 percent in the U.S.?
What will be an ideal response?
In the United States, the government regulates business in its role as a "referee." Which of the following is not among the laws regulating the interaction between households and businesses?
A. Businesses must follow certain rules about workplace safety, minimum wages, and overtime rules. B. Businesses cannot meet with other businesses to agree on prices they will charge. C. Businesses are required to produce certain goods, called public goods, for the government. D. In some businesses, in some states, employees must join a union in order to work at certain jobs.