Which of the following statements is true of the impact of trade restrictions on domestic employment?
a. Domestic firms will produce the goods that otherwise would have been produced abroad, thus employing foreign workers instead of domestic workers.
b. Beside the protected industry, other industries will also benefit in terms of employment.
c. Workers in the protected industry migrate to other industries.
d. Restrictions imposed on trade redistribute jobs by creating employment in the protected industry and reducing employment elsewhere.
e. Minimum wages for skilled and unskilled labor increase in the domestic country.
d
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In a graph showing the market supply and demand for British pounds in terms of U.S. dollars, the supply-of-pounds curve is upward-sloping because ________.
A. fewer British pounds can be purchased per dollar if U.S. dollars become more expensive B. fewer U.S. dollars can be purchased per pound if British pounds become less expensive C. the British will purchase more U.S. goods or services when the dollar price of pounds falls D. the British will purchase more U.S. goods or services when the dollar price of pounds rises
The figure above shows that monopoly is ________ because it produces a level of output at which ________
A) inefficient; marginal benefit equals marginal cost B) efficient; marginal benefit equals marginal cost C) efficient; marginal benefit exceeds marginal cost D) inefficient; marginal benefit exceeds marginal cost E) efficient; producer surplus is maximized
According to the real business cycle model,
A) increases in aggregate demand do not affect GDP. B) increases in aggregate demand lower the price level. C) increases in aggregate demand lower GDP. D) increases in aggregate demand raise GDP.
The idea behind the Phillips curve is that ________
A) tight labor markets lead to inflationary pressures B) when the unemployment rate is low, wages will increase C) when firms raise wages to attract new workers, prices will also increase D) all of the above E) none of the above