A bird flu epidemic causes many people to flee the country, but does not affect labor demand significantly because almost all the goods produced within the country are exported. What happens to current employment and the real wage rate?
A) Both employment and the real wage rate would increase.
B) Both employment and the real wage rate would decrease.
C) Employment would increase and the real wage would decrease.
D) Employment would decrease and the real wage would increase.
D
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If fiat money has no value apart from its use as money, how can it be used as a medium of exchange?
What will be an ideal response?
What is human capital, and what factors contribute to human capital development?
What will be an ideal response?
Which of the following is true?
A) A common market is more deeply integrated than a customs union. B) The European Union is a shallower and broader form of integration than NAFTA. C) NAFTA is an example of a customs union. D) Customs unions require the creation of a common currency.
Suppose Mark has the option of investing in two different investments that cost $200 each. One promises to earn 5% in compounded interest over the next 5 years. The other promises to earn $255.26 in 5 years. Assume the interest rate is 5%. Which asset will he choose?
What will be an ideal response?