Referring to Figure 19.2, the effect of a decrease in U.S. prices is represented by a movement from point
A) a to d. B) d to a. C) b to c. D) a to b.
B
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Suppose the elasticity of labor demand is 1.4. Then a decrease in the wage rate will:
A. Decrease total wage income B. Increase total wage income C. Have no impact on total wage income D. Have an indeterminate impact on total wage income
Which of the following best describes the relationship between the velocity of money and the demand for money?
a. The demand for money is not related to the velocity of money. b. When the demand for money increases, the velocity of money increases. c. The demand for money must be stable for the velocity of money to increase. d. When the demand for money declines, the velocity of money increases.
If a nondiscriminating pure monopolist decides to sell one more unit of output, the marginal revenue associated with that unit will be:
A. equal to its price. B. the price at which that unit is sold less the price reductions that apply to all other units of output. C. the price at which that unit is sold plus the price increases that apply to all other units of output. D. indeterminate unless marginal cost data are known.
One problem with the infant industry argument is that
A. it fails to protect domestic industries from foreign competition. B. it must be approved by the Federal Reserve Board. C. it must be approved by the IMF and the World Bank. D. the protection is typically never removed, creating a domestic monopoly.