Economists use the term ceteris paribus to indicate which of the following?
What will be an ideal response?
Other things are assumed to be constant.
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The majority of dollars spent by government prior to the Great Depression was spending at the ________. In the post World War II period, two-thirds to three quarters of all dollars spent by government in the United States are spent at the ________
A) federal level; state and local levels B) local level; state level C) state and local levels; federal level D) state and local levels; state level
Suppose our firm produces chartered business flights with capital (planes) and labor (pilots) in fixed proportion (i.e., one pilot for each plane)
If the wage rate paid to the pilots increases relative to the rental rate of capital for the airplanes, then: A) the optimal capital-labor ratio should increase. B) the optimal capital-labor ratio should decrease. C) the optimal capital-labor ratio remains the same. D) We do not have enough information to answer this question.
Macland’s Power company is a natural monopoly. Its regulators have given Macland’s Power the price it can charge for the next five years with the fourth and fifth year’s price declining by 5%. After five years, Macland can renegotiate the price. What method are the regulators using to control this natural monopoly?
a. Cost plus regulation b. Price equals average total cost regulation c. Price cap regulation d. Cost elasticity mark up
In the early 2000s, there was a strong black market for Chinese yuan. It is widely held that the Chinese yuan is undervalued. Based on this information, we know that China:
A. has flexible exchange rates. B. does not allow complete convertibility of its currency. C. has partially flexible exchange rates. D. has fixed but convertible exchange rates.