If U.S. prices increase relative to the rest of the world, we would expect:
A. exports to decrease and net exports to increase.
B. imports to increase and net exports to increase.
C. imports to decrease and net exports to increase.
D. exports to decrease and net exports to decrease.
Answer: D
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The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs of bubble gum per hour. Joanne's money wage rate is $12 per hour. If a packet of bubble gum sells for $1.00, then
A) Joanne is creating a $2.00 per hour profit for the firm. B) Joanne is creating a $2.00 per hour loss for the firm. C) the Bubby Gum company should pay Joanne more. D) the Bubby Gum company should decrease the price of the bubble gum so it sells more and makes a larger profit. E) None of the above answers is correct because more information about Joanne's real wage is needed to decide what to do.
The monetary base will increase if
A) currency outstanding decreases. B) loans by the Fed to commercial banks decrease. C) bank reserves increase. D) vault cash in banks increases.
If the price of Chinese food decreases, then the demand for chopsticks decreases because they are complementary goods
Indicate whether the statement is true or false
The unemployment rate is supposed to measure ________. It is an imperfect measure because ________.
A) the percentage of the working-age population who are unemployed; it is impossible to count everyone in the working-age population B) the underutilization of labour resources; it excludes some underutilized labour and some unemployment is unavoidable C) the percentage of the labour force who are unemployed; it is impossible to count everyone in the labour force D) the number of unemployed plus the number of marginally attached workers expressed as a percentage of the labour force; it excludes the marginally attached workers because Statistics Canada considers them as employed E) the underutilization of labour resources; it includes part-time workers and excludes discouraged workers