Assuming that the exchange rate rises by 5 percent, hence, the dollar volume of exports rises by 5 percent, then foreign exchange earnings would
a. remain constant.
b. increase by 5 percent.
c. actually decrease by 5 percent.
d. increase by 10 percent.
A
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In deciding between using a public bureau or a private firm to collect garbage, elected officials may prefer a public bureau because
a. public bureaus have been shown to be more efficient than private firms in garbage collection b. they can convey political favors by giving people jobs in the public bureau c. public bureaus will be more responsive to consumers d. citizens would have to pay if private firms collected garbage e. taxes will be lower if the public bureau is in charge of garbage collection
The money interest rate may be a misleading indicator of real borrowing costs when
a. the unemployment rate is high. b. the actual rate of unemployment exceeds the natural rate of unemployment. c. the inflation rate is high. d. real output is declining.
Most economists' disagreements are a result of:
A) factual considerations. B) positive economics. C) the scientific method. D) normative considerations.
An increase in the demand for a product will shift the
A. supply of labor used to produce the product rightward. B. supply of labor used to produce the product leftward. C. demand for labor used to produce the product rightward. D. demand for labor used to produce the product leftward.