The demand for DVDs increases. As a result
A) the wage rate in the DVD industry increases and the quantity demanded of workers increases.
B) the wage rate in the DVD industry increases and the quantity supplied of workers increases.
C) the demand for labor increases and the supply of labor also increases, leaving wages unchanged.
D) the demand for labor increases, but since the supply curve of labor is perfectly elastic, the wage rate does not change.
Ans: A) the wage rate in the DVD industry increases and the quantity demanded of workers increases.
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Gross domestic product in the economy is measured by the
A) total number of services produced in the economy. B) dollar value of all final goods and services produced in the economy. C) total number of goods and services produced in the economy. D) total number of goods produced in the economy.
Under a fixed exchange rate system, central banks ________ meet the demand for their domestic currency and ________ meet the demand for foreign currencies
A) can always; can always B) can always; are limited in their ability to C) are limited in their ability to; are limited in their ability to D) are limited in their ability to; can never
Suppose households attempt to increase their money holdings. To stabilize output by countering this increase in money demand, the Federal Reserve would
a. increase government spending. b. increase the money supply. c. decrease government spending. d. decrease the money supply.
Refer to the table above. Based on the given information, we see that:
The table below shows the output (either machines or wine) that each unit of input in France and Germany can produce:
A. France has an absolute advantage over Germany in producing either output
B. Germany has an absolute disadvantage in producing wine
C. Germany has no absolute advantage over France in producing either output
D. France will see no economic basis for trading with Germany