Suppose the U.S. dollar changes in value from $1 = 1 euro to $1 = 0.75 euro. What effect would likely be the result?
a. U.S. imports from Europe would increase.
b. European investments in the United States would decline.
c. U.S. tourism to Europe would decline.
d. European exports to the United States would increase.
c. U.S. tourism to Europe would decline.
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Explain how continuing technical progress may cause the price of scarce, exhaustible resources to fall over time
What will be an ideal response?
An increase in nonlabor income leads to
a. a fall in the quantity of labor supplied and in consumption. b. a fall in the quantity of labor supplied but an increase in consumption. c. an increase in the productivity of labor. d. a fall in the wage rate.
Which of the following about Social Security is true?
a. Labor participation tends to increase as spousal earnings increase. b. Social Security works to the disadvantage of low-wage workers due to their shorter life expectancy. c. Low-wage workers derive a higher rate of return from their Social Security taxes than high-wage workers. d. High-wage workers generally begin full-time work at younger ages than low-wage workers.
Which of the following is true for perfect competition, monopolistic competition, and monopoly?
A. The product of all firms is homogeneous. B. Firms will earn zero economic profits in the long run. C. Short-run profits are maximized when marginal cost equals marginal revenue. D. Price is greater than marginal cost at the profit-maximizing quantity.