Which of the following is an example of income inequality between nations?
a. An electronics firm paying less than the U.S. minimum wage because it moved its manufacturing operations to Mexico.
b. The opportunity cost of producing wheat in the U.S. is less than that in the United Kingdom
c. A pair of tennis shoes costing $150 in the U.S. costs $220 in the United Kingdom.
d. The cost of producing wine in the U.S. is more than that in Italy.
a
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Which statement below does not describe a demand curve that is unit elastic?
a. The percentage change in quantity demanded equals the percentage change in price. b. An increase in price will not change total revenue. c. The price elasticity of demand equals one. d. A change in price will not change quantity demanded. e. A decrease in price will not change total revenue.
Which of the following terms describes a financial instrument which pools the deposits of many investors together and invest them in a safe way like short-term government bonds?
a. Money market funds b. Savings deposits c. Time deposits d. Certificates of deposit
High and unexpected inflation has a greater cost
a. for those who save than for those who borrow. b. for those who hold a little money than for those who hold a lot of money. c. for those whose wages increase by as much as inflation than those who are paid a fixed nominal wage. d. for savers in low income tax brackets than for savers in high income tax brackets.
On the contract curve the ______ for both consumers are the same
Fill in the blank(s) with the appropriate word(s).