When a foreign firm sells its exports at a lower price than its cost of production, the firm is
A) imposing an economies of scale cost.
B) dumping.
C) avoiding a tariff.
D) competing in an infant industry.
B
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How has the widespread availability of news on the web, which decreased the demand for newspaper workers, affected the wages of the works?
A. Wages decreased. B. Wages stayed the same. C. Wages increased. D. Wages are not affected by this.
The idea that hysteresis plays a role in macroeconomics implies that
a. monetary policy can have an effect on the natural rate of unemployment. b. workers can overreact to changes in monetary policy. c. stabilization policy is ineffective and counterproductive. d. fiscal policy is ineffective and counterproductive.
The opportunity cost of holding money increases when: a. the interest rate rises
b. the interest rate falls. c. the price level falls. d. nominal GDP rises. e. nominal GDP falls.
If the CPI in 2008 was 100 and the CPI in 2006 was 115, then the inflation rate in 2006 is
A) 100 percent. B) 11.5 percent. C) 115 percent. D) 1.5 percent. E) none of the above.