Assume the price of Levi jeans increases. As a result, you decrease the quantity of Levi jeans purchased each month and purchase more Lee jeans. This is an example of the:
a. consumption effect.
b. utility effect.
c. income effect.
d. substitution effect.
d
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Gravel is made by hand in Nepal, but by machine in the U.S. because
A. capital is much more expensive in the U.S. than in Nepal. B. the relative prices of labor and capital differ so dramatically in the two countries. C. the marginal product of labor is higher in Nepal than in the U.S. D. of consumer preferences.
A minimum wage law prohibits employers from paying workers less than a specified hourly wage. If the minimum wage is above the equilibrium wage:
A. there will be an excess demand for labor. B. there will be an excess supply of labor. C. employment levels will not fall. D. it creates a price ceiling.
The figure illustrates Anne's demand for books. At ________ a book, Anne's demand for books is inelastic
A) all prices between $15 and $30 B) all prices between $10 and $15 C) all prices between $10 and $20 D) all prices below $30
Explain how the money markets of two countries are linked through the foreign exchange market
What will be an ideal response?