Assume most athletic apparel bought by U.S. consumers is imported from other nations. If all else is constant, an increase in the price of foreign-made athletic apparel will cause the U.S
a. consumer price index and GDP deflator to increase by exactly the same amount.
b. GDP deflator to increase more than the consumer price index.
c. consumer price index to increase more than the GDP deflator.
d. GDP deflator to decrease less than the consumer price index.
c
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Suppose that on average there are five more car accidents for every extra inch of snowfall in a certain region. If snowfall is graphed on the y axis and car accidents on the x axis, then if we graph this relationship, the slope of the line will be
A) 25. B) 5. C) 1/5. D) 1.
Which one of the following statements is the most accurate?
A. Appreciation is a fall in E when the exchange rate is fixed while revaluation is a fall in E when the exchange rate is flexible. B. Appreciation is a fall in E when the exchange rate floats while revaluation is a fall in E when the exchange rate is fixed. C. Appreciation is a rise in E when the exchange rate floats while revaluation is a fall in E when the exchange rate is fixed. D. Appreciation is a fall in E when the exchange rate floats while revaluation is a rise in E when the exchange rate is fixed.
Suppose the short-run production function is q = 10 ? L. If the wage rate is $10 per unit of labor, then MC equals
A) q. B) q/10. C) 10/q. D) 1.
Which of the following characterizes the market that Chipotle competes in?
A) "Fast-casual" restaurants sell identical products. B) All "fast-casual" restaurants face horizontal demand curves. C) Barriers to entry are low. D) There are a small number of firms.