When domestic prices rise,
A. people buy fewer imported goods.
B. exports rise.
C. exports fall.
D. interest sensitive consumption rises.
Answer: C
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Why might a developing country choose to peg the value of its currency to the dollar?
What will be an ideal response?
Many bars close to campuses have started offering cheaper beer to consumers with a student ID. These bars
a. Assume students have an inelastic demand curve b. Assume students have an elastic demand curve c. Are practicing price discrimination d. Both b and c
Economic theory suggests that college graduates receive higher wages than those with only a high school education because
a. the supply of high school graduates is small relative to the demand for their labor. b. college graduates must be paid higher wages because their educational costs were higher. c. college graduates are more productive. d. college graduates have formed stronger unions.
Figure 17.2 depicts a firm's marginal revenue product curve. If the wage rate is $15, how many workers will the firm demand?
A. four workers B. five workers C. six workers D. seven workers