Fixing exchange rates and limiting the convertibility of currency will
a. improve international trade.
b. increase the ability of people to gain from specialization.
c. lead to black markets and less trade.
d. increase productivity and living standards.
C
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Sectors where the development process leads to a more rapid expansion of demand than supply in goods or factor markets are known as
(a) the crisis in planning. (b) input-output analysis. (c) bottlenecks. (d) infant industries.
At the optimal consumption bundle, the marginal rate of substitution of leisure for consumption is equal to
A) the real wage and the budget line is tangent to an indifference curve. B) minus the real wage and the budget line is tangent to the indifference curve. C) the real wage and the budget line intersects the indifference curve. D) minus the real wage and the budget line intersects the indifference curve.
Suppose that a mining company employs 80% of the available laborers in a town. Explain what will happen to the number of laborers hired and the wage rate paid by the mine if a minimum wage is set at the competitive level
What will be an ideal response?
If price increases 6% and the quantity exchanged decreases 6%, what does that tell us about the elasticity of supply? a. It tells us nothing about the elasticity of supply. b. Supply is elastic
c. Supply is inelastic. d. Supply is unit elastic.