If domestic and foreign prices rise by the same relative amount, what will happen to the trade balance?
a. It will rise.
b. Nothing will happen.
c. It will fall.
d. Not enough information is provided to answer the question.
Ans: b. Nothing will happen.
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In general, the most efficient taxes:
A. are often not the most equitable. B. are often the most equitable. C. raise the most revenues. D. do not raise the most revenues.
Suppose a fast food restaurant was one of many hiring workers, the minimum wage was $7.25 an hour, and it was paying $7.25 an hour to new employees. Suppose a worker earns a $0.75 raise to $8.00 an hour. Now suppose the minimum wage rises to $8.25 and hour. This worker would be paid
A. $8.00 an hour. B. $9.00 an hour. C. $8.25 an hour. D. somewhere between $8.25 and $9.00 an hour depending on the policies of the restaurant.
In the United States globalization has played:
A. a significant role in growing income disparity because foreign workers' incomes have risen. B. little role in growing income disparity because while some jobs were lost, the gain in jobs balanced out those that were lost. C. a significant role in growing income disparity because some sectors have benefited and others have not. D. little role in growing income disparity because all Americans are consumers who have enjoyed lower prices.
An increase in the productivity of a factor of production will
A. cause a firm to move down the marginal revenue product curve. B. shift its marginal revenue product curve to the right. C. cause a firm to move up the marginal revenue product curve. D. shift its marginal revenue product curve to the left.