What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattés, increased, and scientists discovered that lattés cause heart attacks?
a. Both the equilibrium price and quantity would increase.
b. Both the equilibrium price and quantity would decrease.
c. The equilibrium price would decrease, and the effect on equilibrium quantity would be ambiguous.
d. The equilibrium quantity would decrease, and the effect on equilibrium price would be ambiguous.
d
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A country on a gold standard was able to maintain people's confidence in the value of its currency by:
a. printing more and more paper money. b. restricting international exchange of goods and services. c. ensuring the convertibility of paper money into gold. d. maintaining a fixed stock of foreign currencies. e. ensuring balance of payment surplus.
Tucker Corporation sells its product for $5.00. Tucker's industrial engineers have informed management that hiring one additional worker will increase output by five units per hour. Tucker should hire the additional worker only if the wage rate is:
A. $5.00 or less per hour. B. $1.00 or more per hour. C. $25.00 or less per hour. D. more than $25.00 per hour.
What is the principal-agent problem as applied to corporations?
What will be an ideal response?
Moving up the Phillips curve in the short run will cause the entire curve to shift upward in the long run
a. True b. False