In the specificfactors model, migration of labor will cause:
a. the wage to rise in the receiving country and the wage to fall in the sending country.
b. the wage to fall in the receiving country and the wage to rise in the sending country.
c. the wage to rise in both the receiving and sending countries.
d. the wage to fall in both the receiving and sending countries.
Ans: b. the wage to fall in the receiving country and the wage to rise in the sending country.
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If the GDP price index is 137, this value means that prices have increased
A) 137 percent in the last year. B) 37 percent in the last year. C) 37 percent since the base year. D) 137 percent since the base year. E) 63 percent since the base year.
The short-run supply curve of the perfectly competitive firm is the firm’s
A. MC curve. B. AVC curve. C. MC curve above the minimum point on the AVC curve. D. MC curve above the minimum point on the ATC curve.
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real GDP and reserves account in the context of the Three-Sector-Model? a. Real GDP rises and reserves account becomes more negative (or less positive)
b. Real GDP falls and reserves account remains the same. c. Real GDP and reserves account remain the same. d. Real GDP rises and reserves account remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Giving up one alternative for another is called ____________ .
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