When future labor income rises in a large open economy, it causes the current account to ________ and investment to ________.
A. fall; fall
B. rise; remain unchanged
C. fall; rise
D. rise; rise
Answer: A
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When the price of a movie ticket increases from $5 to $7, the quantity of tickets demanded decreases from 600 to 400 a day. What is the price elasticity of demand for movie tickets?
A) 0.83 B) 1.20 C) 1.00 D) 2.32
The firm would have a better bargaining position if
a. The firm can easily replace the workers with machinery b. The workers are a critical part of the production process c. The workers are highly specialized and would not find employment elsewhere easily d. Both A&C
A tax in an efficient market:
A. increases efficiency. B. decreases total surplus. C. maximizes total surplus. D. often fails to generate revenue.
Which of the following tools of commercial policy yields a revenue to the government?
a. Quota b. Tariff c. Export subsidy d. Government procurement policy e. Health and safety standards