How does rapid economic growth at home affect foreign exchange markets?
What will be an ideal response?
It increases home country demand for foreign currencies as it increases imports. The home currency depreciates.
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Imagine yourself to be a monopsonist producing strawberries in a small Florida farming community. a. You do not have to deal with the marginal revenue product of labor. b. You can control the price of the good. c. The wage rate is given to you and you can hire as many workers as you wish at that rate
d. You face an upward-sloping supply curve of labor and can choose any wage rate and labor combination shown on that curve. e. For your firm, labor is preferred to capital as a factor of production.
When ________ scale of production leads to ________ average costs, an industry exhibits increasing returns to scale.
A. decreased; lower B. decreased; unchanging C. decreased; higher D. increased; higher
Dina is driving to work on an interstate highway at 90 MPH, well in excess of the legal speed of 65 MPH. Sandy is also driving to work at the same time, going 85 MPH. A state trooper pulls Dina over and gives her a speeding ticket. Sandy continues driving, but if Dina had not been speeding, the trooper would have ticketed Sandy instead. In terms of externalities, this story shows that:
a. Sandy's actions gave Dina a positive externality. b. Dina's actions gave Sandy a positive externality. c. Sandy's actions gave Dina a negative externality. d. Dina's actions gave Sandy a negative externality. e. Dina's and Sandy's actions did not create any externalities.
In 2010 the federal government reduced the Social Security tax withholding rate from 12.4 percent (6.2 percent on both the employer and employee) to 8.4 percent (4.2 percent on both the employer and employee) on the wages of all workers. If the tax were redefined such that the entire 12.4 percent was statutorily levied on employers, economic analysis suggests that the actual burden of the tax
would a. remain unchanged. b. shift more heavily toward employers. c. shift more heavily toward employees. d. be different than if the entire 12.4 percent was statutorily imposed on employees.