Suppose it is observed that the equilibrium wage and employment level have both risen in a competitive labor market. One can infer that the:
A. supply of labor has decreased.
B. demand for labor has decreased.
C. demand for labor has increased.
D. supply of labor has increased.
Answer: C
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The notion that, following a devaluation, the BOT falls for a while before increasing is called a ________ effect
A) relative price B) elasticity C) J-curve D) pass-through
"Net exports" rather than "exports" are included in demand/expenditures, because:
a. Actually, exports are included and not net exports because only exports are a source of demand. b. Imports are counted in personal consumption expenditures. Therefore, net exports instead of just exports are included in aggregate demand. c. Imported goods and services are a part of personal consumption, gross private domestic Investment, and government spending. Therefore, net exports instead of just exports are included in demand. d. Neither exports nor net exports is included in aggregate demand. e. None of the above.
Tom's Tent Company has total fixed costs of $300,000 per year. The firm's average variable cost is $80 for 10,000 tents. At that level of output, the firm's average total costs equal
a. $80 b. $90 c. $100 d. $110
In 2009-2010 the federal government
A) achieved a budget surplus for the first time in more than a decade. B) ran a budget surplus, and this reduced the size of the national debt. C) financed approximately 40 percent of its expenditures through borrowing. D) ran a budget deficit, and this reduced the size of the national debt.