When future labor income falls in a small open economy, it causes the current account to ________ and investment to ________.
A. fall; remain unchanged
B. rise; rise
C. rise; remain unchanged
D. fall; rise
Answer: C
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The Widgetville County Wolfpack has won 90 percent of their last 20 games played under a full moon. This means:
A. the weather affects how they play. B. there is a positive correlation between their play and the occurrence of a full moon. C. that full moons cause the team to play better. D. that causation can be found between the two events.
If the government breaks up a constant-cost, nondiscriminating monopoly into a perfectly competitive industry, what would we expect with regard to output and price?
a. Output and price will decrease. b. Output will increase and price will decrease. c. Output and price will increase. d. Output will decrease and price will increase. e. No change.
The number of times per year a dollar is used to transact an exchange is known as
a. liquidity of money b. velocity of money c. quantity theory of money d. equation of exchange e. rapidity index
The fact that wage differentials continue to exist across different groups of workers leads economists to believe that
a. firms apparently are not profit maximizers. b. discrimination by customers is the most common type of economic discrimination. c. the market has failed to properly allocate wages to different workers. d. differences in human capital and job characteristics must be important in explaining the differences in wages.