Recall the Application about incentives to immunize children in developing countries to answer the following question(s). According to this Application, which of the following were given to parents who immunized their children?
A. dal (a common Indian food)
B. a set of cooking pans
C. rupees
D. both dal (a common Indian food) and a set of cooking pans
Answer: D
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Under a fixed exchange rate system, if the government decides to devalue its currency, net exports will ________ and the IS curve will shift to the ________
A) increase; left B) increase; right C) decrease; left D) decrease; right
One problem with average cost pricing for a natural monopoly is that
a. it requires a side payment b. maximizes the firm's revenue c. makes the firm's total cost equal to zero d. maximizes the firm's profit e. it provides no incentive for the firm to economize on capital
Because the CPI is based on a fixed basket of goods, the introduction of new goods and services in the economy causes the CPI to overestimate the cost of living. This is so because
a. new goods and services are always of higher quality than existing goods and services. b. new goods and services cost less than existing goods and services. c. new goods and services cost more than existing goods and services. d. when a new good is introduced, it gives consumers greater choice, thus reducing the amount they must spend to maintain their standard of living.
A technological advance that increases the productivity of teachers can be expected to have what effects on the equilibrium labor market for teachers?
A. Wages will rise, and quantity of labor will fall. B. Wages will rise, and quantity of labor will rise. C. Wages will fall, and quantity of labor will fall. D. Wages will fall, and quantity of labor will rise.