When an American hires a Mexican worker to perform a job, we know that
a. Both the American and the Mexican would be better off if they had dealt with someone in their own country instead.
b. The American is made better off by exploiting the Mexican worker, who is worse off.
c. Both the American and the Mexican are better off than they would be if they had not made this voluntary exchange.
d. The Mexican worker is better off, but the American employer is worse off because he should have hired an American worker.
c. Both the American and the Mexican are better off than they would be if they had not made this voluntary exchange.
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The market demand curve shows how the quantity demanded of a product, during a specified time period, changes as the price of that product changes.
Answer the following statement true (T) or false (F)
Julia knows that the price elasticity of movie rentals is 3. She knows, therefore, that if she raises her price from $2 to $2.50, her rentals will drop by approximately
A. 150 percent. B. 100 percent. C. 75 percent. D. 33 percent.
Refer to Figure 10.8. Other things equal, a decrease in the nominal money supply would best be represented by
A) a movement from point A to point C. B) a movement from point A to point D. C) a shift from LM1 to LM2. D) a shift from LM2 to LM1.
Assume that for a given year, the nominal interest rate is 9 percent while inflation rises to 11 percent indicating a 4 percent higher rate than anticipated. Which group of people is made better off by the inflation?
a. Those who lend at fixed interest rates b. Those who borrow at fixed interest rates c. Those who borrow at variable interest rates d. Those who receive fixed incomes e. Those who save at variable interest rates