If a country removes an import quota, what happens to its exchange rate, its exports, and its net exports?
Its exchange rate falls, its exports rise, and its net exports are unchanged.
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Suppose the elasticity of labor demand is 0.6. Then a decrease in the wage rate will:
A. Decrease total wage income B. Increase total wage income C. Have no impact on total wage income D. Have an indeterminate impact on total wage income
Which statement is true?
A. Banking began in biblical times. B. Most banks do NOT have national charters. C. Bankers would like to hold a reserve ratio of about 10 percent. D. About half the banks in the United States are members of the FDIC.
In the Stackelberg model, the leader has a first-mover advantage because it
A) has lower costs than the follower.
B) commits to producing a larger quantity.
C) reacts to the follower's decision.
D) differentiates its output.
Suppose an insurance company determines that the average annual malpractice cost is $10,000 for reckless lawyers and $500 for careful lawyers. If 10% of the lawyers insured by the company are reckless, the company will earn zero economic profit if the price of insurance is:
A. $500. B. $1,450. C. $5,250. D. $10,000.