Suppose the balance on the financial account is -$300 billion and the balance on the capital account is +$5 billion. The size of the current account is:
A. +$295 billion.
B. -$295 billion.
C. +$305 billion.
D. +$5 billion.
A. +$295 billion.
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Price elasticities of supply are always:
a. the same as price elasticities of demand. b. negative numbers. c. positive numbers. d. greater than one. e. increased when a tax is imposed.
Gladys agrees to lend Kay $1,000 for one year at a nominal rate of interest of 5 percent. At the end of the year prices have actually risen by 7 percent
a. Gladys earns extra real income. b. Kay loses extra real income. c. Kay receives extra real income. d. Neither party gains or loses if the loan is repaid.
Answer the following statements true (T) or false (F)
1. In a purely competitive labor market, an individual firm must pay a rising price for labor if it wants to acquire more labor. 2. If a firm must pay a daily wage of $35 to hire 11 workers, and a daily wage of $40 to hire 12 workers, its marginal resource cost of hiring the twelfth worker is $40. 3. A monopsonist in the labor market tends to hire more workers than would be hired if the labor market were purely competitive. 4. A monopsonist faces an upsloping supply curve of labor, but it could face a horizontal demand curve for its product in the output market.
A decrease in the price of eggs from $1.50 to $1.30 per dozen resulted in an increase in egg purchases in two cities
In Philadelphia, daily egg purchases increased from 6000 to 8000 dozens; in nearby Dover, Delaware, daily egg purchases increased from 300 to 400 dozens. The price elasticity of demand is therefore A) lower in the smaller city as would be expected. B) greater in the smaller city as would be expected. C) certainly affected by population differences in different markets. D) the same in Philadelphia as in Dover.