The labor demand curve of a firm that sells its product in a purely competitive market:
A. Is horizontal or perfectly elastic
B. Is downsloping and flatter than the labor demand curve of a firm that sells its product in an imperfectly competitive (or monopolistic) market
C. Is upsloping
D. Is downsloping and steeper than the labor demand curve of a firm that sells its product in an imperfectly competitive (or monopolistic) market
B. Is downsloping and flatter than the labor demand curve of a firm that sells its product in an imperfectly competitive (or monopolistic) market
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Which of the following is true?
i. Compared to a no-trade situation, exports make consumers better off. ii. Tariffs make consumers worse off. iii. Trade is restricted because protection brings small losses to a large number of people and large gains to a small number of people. A) Only i B) Only ii C) Only iii D) i and iii E) ii and iii
Net national product equals
A) gross national product minus statistical discrepancy. B) gross national product minus depreciation. C) national income minus taxes on production and imports. D) national income plus depreciation.
Explain how exchange rates affect the level of aggregate economic activity and the price level. Use appropriate AS/AD diagrams to illustrate your answer
A nation's official reserve transaction account
A) is always a positive number. B) is always a negative number. C) is always equal to zero. D) compensates for the differences in the current and capital accounts.