Suppose that Norma is disappointed in the revenue her custom dress shop is bringing in. She is thinking of raising the price of each? dress, but she asks you for advice.
A. raise the price if demand is elastic.
B. lower the price if the income elasticity of demand is positive.
C. lower the price if the income elasticity of demand is negative.
D. raise the price if demand is inelastic.
Ans: D. raise the price if demand is inelastic.
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Which of the following will result in a decrease in a consumer's purchasing power?
A) A decrease in the consumer's income B) An increase in the price of the good on the vertical axis C) An increase in the price of the good on the horizontal axis D) all of the above
Suppose nominal interest rates in the U.S. rise from 4.6% to 5% and decline in Britain from 6% to 5.5%, while U.S. consumer inflation remains unchanged at 1.9% and British inflation declines from 4% to 3%. In addition suppose, real growth in the U.S. is
forecasted for next year at 4% and in Britain real growth is forecasted at 5%. Finally, suppose producer price inflation in the U.S. is declining from 2% to 1% while in Britain producer price inflation is rising from 2% to 3.2%. Explain what effect each of these factors would have on the long-term trend exchange rate ( per $) and why?
The marginal productivity principle has some relevance to organizing production in a socialist society
a. True b. False Indicate whether the statement is true or false
If carpentry positions A and B required identical skill levels, other things constant, which one of the following would most likely elevate the wage rate of position A relative to position B?
a. Position A offers steady employment, whereas employees holding position B are often laid off. b. Position A offers more sick leave and more paid holidays. c. The work place of position A is in the intense heat of the sun, whereas the work place of B is air-conditioned. d. Position A is a safe office job; position B requires the employee to operate a dangerous saw.