Refer to above figure. Why would workers not shift from agriculture to manufacturing in the initial situation where wages are higher in the latter?
What will be an ideal response?
Imperfections in the labor market.
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Other things the same, if participants in foreign exchange markets come to expect an increase in the value of the U.S. dollar ________
A) the actual value of the U.S. dollar will not be affected B) the actual value of the U.S. dollar will fall C) the actual value of the U.S. dollar will rise D) one cannot predict the movement of the U.S. dollar in the future
Deviations from the perfectly competitive market can lead to
A. inefficiently high production costs. B. higher prices and smaller outputs. C. less efficient resource allocation. D. All of the responses are correct.
When the Fed sells government bonds, the reserves of the banking system
a. increase, so the money supply increases. b. increase, so the money supply decreases. c. decrease, so the money supply increases. d. decrease, so the money supply decreases.
Which constitutes an obstacle to collusion among oligopolists?
A. A standardized product. B. Trademarks and copyrights. C. A large number of firms. D. Prosperous economic conditions.