John just graduated law school and has two competing job offers. The first is in Phoenix and pays a salary of $150,000 . He has a similar job offer in Cleveland that pays $90,000 . Which pair of CPIs would make the two salaries have the same purchasing power?
a. 70 in Phoenix and 42 in Cleveland
b. 68 in Phoenix and 34 in Cleveland
c. 42 in Phoenix and 70 in Cleveland
d. 34 in Phoenix and 68 in Cleveland
a
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At the 1976 IMF conference in Jamaica,
A) the United States reaffirmed its commitment to buy and sell gold at a fixed price. B) currencies were formally allowed to float. C) the major countries of the world agreed to continue a system of fixed exchange rates. D) the gold standard was reestablished.
The labor ____________ curve(s) will shift _______________ if there is an increase in productivity or an increase in the demand for the final product.
a. demand; left b. supply; left c. demand; right d. supply; right
In the above figure, starting at E3, if there is an increase in technology that causes a permanent increase in production capabilities
A. aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1. B. aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0. C. aggregate supply would shift to SRAS1 and then return to SRAS0. D. aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1.
Eliza consumes 12 cappuccinos and 8 apple turnovers per week. The price of a cappuccino is $4 each and apple turnovers are $1 each
a. What is the amount of income allocated to cappuccino and apple turnover consumption? b. What is the price ratio (the price of cappuccinos relative to the price of apple turnovers)? c. Explain the meaning of the price ratio you computed. d. If Eliza maximize utility, what is the ratio of the marginal utility of cappuccinos to the marginal utility of apple turnovers? e. If the price of apple turnovers falls, will Eliza consume more apple turnovers, fewer apple turnovers, or the same amount of apple turnovers? Explain your answer using the rule of equal marginal utility per dollar.