Countries with floating exchange rates have certain characteristics. Indicate the one that does not apply to those countries
A) closed economy
B) small economy
C) diversified trade
D) divergent inflation rates
B
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The difference between the amount consumers would be willing to pay and the amount they actually pay for a good is called
a. price elasticity of demand. b. consumer surplus. c. the substitution effect. d. income elasticity of demand.
All other things remaining the same, a large increase in the net number of Mexican immigrant workers in the United States from Mexico causes:
a. U.S. GNP to be greater than the U.S. GDP. b. U.S. GNP to be less than the U.S. GDP. c. U.S. gross private domestic investment to rise. d. U.S. GNP to be greater than the U.S. GDP because U.S. gross private domestic investment rises
If a firm's production function is Leontief and the wage rate goes up, the:
A. firm must use more labor in order to minimize the cost of producing a given level of output. B. firm must use less labor in order to minimize the cost of producing a given level of output. C. cost minimizing combination of capital and labor does not change. D. firm must use more capital in order to minimize the cost of producing a given level of output.
For many consumers, bacon and eggs are complements. Therefore, egg producers monitor the price of bacon because the cross elasticity between bacon and eggs is
A. negative, and a decrease in the price of bacon will increase the demand for eggs. B. positive, and an increase in the price of bacon will increase the demand for eggs. C. negative, and a decrease in the price of bacon will decrease the demand for eggs. D. positive, and a decrease in the price of bacon will increase the demand for eggs.