As the time a person has to adjust to a price change increases, the elasticity of demand will ______.
a. decrease
b. increase
c. remain constant
d. fluctuate
b. increase
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A bank has $200 million in assets and $230 million in liabilities. The bank's net worth is _____________ million and the bank is ____________
A) -$215; insolvent B) -$30; insolvent C) $15; solvent D) $30; solvent
All of the following are true regarding flexible exchange rates except
A. Exchange rate movements alter relative prices and may disrupt import and export flows. B. The quantity of foreign exchange demanded equals the quantity supplied. C. Some people are hurt while others are helped by exchange rate movements. D. Speculators typically push exchange rates away from the long-term equilibrium.
Bob just graduated from college and has just landed his first job with a local accounting firm that will start in three months. Bob plans to use that time to find a place to live, and adjust to the new area. Bob would be considered:
A. frictionally unemployed. B. Bob is not in the labor force. C. employed. D. structurally unemployed.
Exhibit 7-5 Workers and output data Laborers TotalProduct 0 0 1 8 2 20 3 25 4 28 5 29 In Exhibit 7-5, diminishing returns set in when the ____ worker is hired.
A. first B. second C. third D. fourth