Refer to the given data, symbols, and assumptions. If migration is costless and unimpeded, the combined value of total product in the two countries will:
Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the
cumulative total product (output) of the particular number of workers.
Assumptions: (1) The current wage in Zinnia is $20 and the current wage in Marigold is $12; (2) full employment exists in both countries.
A. decline from $62 to $36.
B. decline from $120 to $70.
C. increase from $36 to $62.
D. increase from $62 to $70.
D. increase from $62 to $70.
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An increase in the budget deficit would cause a
a. shortage of loanable funds at the original interest rate, which would lead to falling interest rates. b. surplus of loanable funds at the original interest rate, which would lead to rising interest rates. c. shortage of loanable funds at the original interest rate, which would lead to rising interest rates. d. surplus of loanable funds at the original interest rate, which would lead to falling interest rates.
What is the difference between a normal good and an inferior good? How does this relate to the demand curve?
What will be an ideal response?
In the short run in the Keynesian model, a sharp increase in oil prices would leave the economy with a ________ level of output and a ________ real interest rate
A) higher; lower B) lower; higher C) lower; lower D) higher; higher
Economics is the study of how people:
a. vote for political leaders who decide what is to be produced. b. make choices to produce and consume goods and services. c. establish social institutions that maximize well-being. d. develop value systems that affect their consumption choices.