Everything else remaining unchanged, an increase in interest rates in the United States is most likely to result in
A. capital inflows into the United States.
B. depreciation of the dollar.
C. outflows of capital from the United States.
D. a decrease in the demand for dollar-denominated financial assets.
Answer: A
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Which of the following is not an accurate description of the point at which the labor supply and labor demand curves meet?
a. The point at which the market for labor has cleared b. The real wage at which the quantity of labor demanded is equal to the quantity of labor supplied c. The point at which there is no frictional unemployment d. The point at which there is no unemployment e. The wage at which the number of workers firms want to hire is equal to the number of people who want jobs
Suppose that the United States can make 15 cars or 20 bottles of wine with one year's worth of labor. France can make 10 cars or 18 bottles of wine with one year's worth of labor. From these numbers, we can conclude that
a. the United States has a comparative advantage in the production of cars. b. France has a comparative advantage in the production of wine. c. the United States has an absolute advantage in the production of cars. d. All of the above are correct.
Answer the following statement true (T) or false (F)
1) The real opportunity cost of producing product X is the amounts of products Y, Z, and so forth, that might have been produced if resources had not been used to produce X. 2) The short run is a period of time during which all costs are fixed costs. 3) Variable costs are costs that change directly with output. 4) Diseconomies of scale stem primarily from the difficulties in managing and coordinating a large-scale business enterprise. 5) At zero units of output a firm's variable costs are zero.