The above figure shows the market for labor. The employer is a monopsony. If a minimum wage of $10 is imposed, the equilibrium level of employment is
A) 200 hours per day.
B) 400 hours per day.
C) 600 hours per day.
D) 800 hours per day.
C
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Prices for fresh fruit, vegetables and other food products are examples of
A) custom prices. B) sticky prices. C) temporary prices. D) auction prices.
If U.S. imports increase, the sum of the balance of payments accounts (the sum of the current account plus capital and financial account plus official settlements account)
A) becomes negative. B) becomes positive. C) becomes negative or positive depending on the government budget deficit or surplus. D) does not change.
If you burn your trash in the backyard in spite of regulations against it, then you are
A) acting economically irrationally and creating a social cost. B) acting rationally and creating a positive externality. C) saving landfill space and creating a social benefit. D) avoiding the private costs associated with disposing your trash some other way and creating a social cost.
Which of the following would most likely cause a nation's currency to depreciate?
a. an increase in exports coupled with a decline in imports b. a slower inflation rate than those of its trading partners c. lower domestic real interest rates d. lower real interest rates abroad