If the world price of a good is equal to its no-trade equilibrium price, the country will import more of the good from other nations
a. True
b. False
Indicate whether the statement is true or false
False
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In a market characterized by a single seller and many buyers, when is it profitable to increase the value of a product by incurring fixed costs?
If the elasticity of demand for labor in the United States is unitary, immigration into the United States can be expected to:
A. increase the average U.S. wage rate. B. decrease the total amount of wage earnings that U.S. workers receive. C. increase the total amount of wage earnings that U.S. workers receive. D. leave the total amount of wage earnings that U.S. workers receive unchanged.
A depositor places $5,000 in cash in a commercial bank, and the reserve ratio is 20 percent; the bank sends the $5,000 to the Federal Reserve Bank. As a result, the reserves and excess reserves of the bank have been increased, respectively, by:
A. $5,000 and $1,000 B. $5,000 and $4,000 C. $5,000 and $5,000 D. $4,000 and $4,000
Refer to the scenario above. Which of the following will happen if her husband quits his job to look after their son instead of Sarah?
A) The country's GDP will remain unchanged. B) The country's GDP will increase. C) The country's trade deficit will increase. D) The country's trade surplus will increase. Mike's housekeeper charges $30 for mowing his lawn.