What are the short-run economic effects when U.S. firms substitute labor outside of the U.S. for labor inside the U.S.?
A) The demand curve for labor in the U.S. decreases, and the demand curve in the foreign country will increase.
B) The demand curve for labor in the U.S. increases, and the demand curve in the foreign country will decrease.
C) The demand curve for labor in the U.S. decreases, and the demand curve in the foreign country will decrease.
D) The demand curve for labor in the U.S. increases, and the demand curve in the foreign country will increase.
Answer: A
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When a bank receives $100,000 in new deposits, the amount of loans the bank can make is limited by
A) the Treasury Department. B) federal law. C) its desired reserve ratio. D) the annual federal budget. E) state law, with banks in different states being able to make different amounts of loans.
According to economists
A) market capitalism is the best system available and some government intervention and regulation can either help or harm the social interest. B) market capitalism is the best system available and any government intervention and regulation will inevitably harm the social interest. C) centrally planned socialism is the best system available since governments generally make decisions that are in social interest. D) centrally planned socialism and pure market capitalism are equally capable of promoting social interest, but a mixed economy is an undesirable compromise between the two that will harm social interest.
In Econland, 500,000 of the 2 million people in the country are employed. Average labor productivity in Econland is $15,000 per worker. Real GDP per person in Econland totals:
A. $3,750. B. $11,250. C. $60,000. D. $1,250.
Imagine that someone offers you $X today or $1,500 in 5 years. If the interest rate is 4 percent, then you would prefer to take the $X today if and only if
a. X > 1,055.56. b. X > 1,120.89. c. X > 1,232.89. d. X > 1,338.26.