Which of the following is a positive economic statement?
A) U.S. citizens should only buy products which are produced in the United States.
B) The government should ban the production and sale of incandescent light bulbs.
C) Raising the tax on gasoline raises the selling price of gasoline.
D) The government should revamp its immigration policies.
Answer: C
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The figure above shows the labor market in a small town. If the government imposes a wage of $10 that firms must at least pay,
A) the government has imposed a minimum wage and market forces are not allowed to work. B) inflation will occur as wages rise. C) job search will decrease. D) the government has imposed an efficiency wage. E) job rationing will decrease.
In the one-input model, profit is always maximized where marginal revenue product is equal to the input price.
Answer the following statement true (T) or false (F)
If a firm must pay for goods it has ordered with foreign currency, it can hedge its foreign exchange-rate risk by ________ foreign exchange futures ________
A) selling; short B) buying; long C) buying; short D) selling; long
Social Security retirement benefits are increased automatically each year at the rate of inflation
Indicate whether the statement is true or false