If a good is inferior, then whenever the compensated demand curve intersects the uncompensated demand curve:
A. the uncompensated demand curve is steeper than the compensated demand curve.
B. the compensated demand curve is steeper than the uncompensated demand curve.
C. both curves will have the same slope.
D. the compensated demand curve will be upward-sloping.
A. the uncompensated demand curve is steeper than the compensated demand curve.
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Which of the following is not a problem with trade restrictions?
a. the high cost of rent-seeking activities such as lobbying b. the high cost of enforcement c. the unintended effects on related industries d. the inability to save U.S. jobs in the short run in industries that compete with imports e. the possibility of retaliation
Which of the following statements is most accurate?
A. Central bank statements in developed countries differ in length but are similar in the speed with which policy changes are announced. B. Central bank statements in developed countries are similar both in length and in the speed with which policy changes are announced. C. Central bank statements in developed countries differ both in length and in the speed with which policy changes are announced. D. Central bank statements in developed countries are similar in length but differ in the speed with which policy changes are announced.
Using the HO model, assume that the United States is capital abundant and Mexico is labor abundant. If soybeans are capital intensive and avocados are labor intensive,
A) Mexico will produce more soybeans once trade is introduced. B) the United States will produce more avocados once trade is introduced. C) avocado prices in the United States will fall once trade begins. D) soybean prices in Mexico will rise once trade begins.
In which of the following cases is the employment relationship between the employee and the employer likely to resemble a spot market transaction?
a. When hospitals hire clerical staff b. When a university hires members of faculty c. When a corporate law firm hires lawyers d. When unskilled workers are hired on a day-to-day basis for odd jobs