If labor and capital are substitute resources in production, an increase in the price of capital will
A. increase the wage rate and decrease the number of workers hired.
B. decrease the wage rate and increase the number of workers hired.
C. decrease the wage rate and decrease the number of workers hired.
D. increase the wage rate and increase the number of workers hired.
D. increase the wage rate and increase the number of workers hired.
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All of the following are examples of fringe benefits except
a. health insurance. b. retirement payments. c. overtime payments. d. education subsidies.
Suppose U.S. consumers start buying more English shoes and fewer U.S. shoes. What impact will this trend have on the foreign exchange market?
a. The U.S. overall demand for foreign exchange, and British pounds, in particular, will increase. b. The U.S. overall demand for foreign exchange, and British pounds, in particular, will decrease. c. The U.S. demand for British pounds will increase, but the overall demand for foreign exchange will probably decrease. d. The U.S. demand for British pounds will decrease, but the overall demand for foreign exchange will probably increase.
Refer to the scenario above. Which of the following will happen in equilibrium if the game is played only once?
A) Social surplus will be maximized. B) Tom will trust Harry and Harry will defect. C) Tom will trust Harry and Harry will cooperate. D) Neither of them will make any money.
The annual Great Sofa Round-up is a collaborative event between Colorado State University and the City of Fort Collins aims to help students and neighbors get rid of unwanted furniture, while giving people in need access to inexpensive sofas
Suppose on the day of the Round-up, your friends take their couches to the main parking lot on campus where the Round-up is held. Raj will not sell his couch for less than $30, Emily will not sell her couch for less than $50, Nara will not sell her couch for less than $20, Sergio just wants to get rid of his couch and he is willing to give it away for free. At the Round-up, potential buyers think that all the couches available are basically the same and they are willing to buy a couch for $25. Who will sell their couch and what is the value of the market producer surplus? A) Nara and Sergio; $30 B) Nara and Sergio; $5 C) Raj and Emily; $30 D) Emily, Nara, and Sergio; $25