If the real wage rate is such that the quantity of labor supplied is greater than the quantity of labor demanded
A) the economy is at full employment.
B) actual real GDP will not equal potential GDP.
C) job search decreases.
D) labor resources are allocated efficiently.
B
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An increase in taxes (when Ricardian equivalence doesn't hold) causes the real interest rate to ________ and the price level to ________ in general equilibrium
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Which of the following would not be considered price discrimination?
a. Long distance telephone rates are cheaper late at night. b. Airline fares are cheaper if you reserve several weeks in advance. c. The price of lettuce is 59 cents a head and two for a dollar. d. The price of a brand-name prescription drug is higher than the price of a generic brand. e. Senior citizens pay less for a movie.
Which of the following examples would most likely cause the AVC curve to move up?
a. paying rent
b. hiring more employees
c. reducing the cost of maintaining equipment
d. paying insurance
A nominal depreciation of the Mexican peso (against all currencies) indicates that
A) the peso price of foreign currency has fallen. B) the Mexican real exchange rate will not change if the price level in Mexico falls. C) the peso price of, for example, the U.K. pound has increased. D) the number of units of foreign currency that one can obtain with one peso has decreased.