If the price consumption curve of good X, which is on the horizontal axis, slopes downward, we can be sure that consumers spend
A. less money on X even though they buy more of it.
B. the same proportion of their budget on X.
C. more money on X but they get less of X.
D. more money on X but they get more of X.
Answer: D
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In comparison to an employer in a competitive labor market, a monopsony employer pays a ________ wage rate and hires ________ workers
A) lower; fewer B) lower; more C) higher; more D) higher; fewer
Adverse selection may lead to
a. owners of used cars choosing to keep them rather than sell them at the low price that skeptical buyers are willing to pay. b. wages being stuck above the level that balances supply and demand, resulting in unemployment. c. buyers with low risk choosing to remain uninsured because the policies they are offered fail to reflect their true characteristics. d. All of the above are correct.
According to New Keynesians, an increase in which of the following will tend to cause the inflation rate to increase?
A. anticipated future inflation B. an unexpected increase in aggregate demand C. firms' average inflation adjusted per-unit costs of production D. all of these
Suppose the dollar-euro exchange rate falls. Then
A. the dollar is less valuable relative to the euro. B. French firms will import more from the United States into France. C. U.S. firms will export less to France. D. the euro is more valuable relative to the dollar.