Suppose Ford, GM, and Dodge make the majority of pick-up trucks sold in the United States If they all sell for approximately the same price, and Ford offers a $2,000 rebate on new truck sales, what can Ford expect to see?
a. an unprecedented increase in truck sales
b. an immediate response by GM and Dodge
c. a visit from the antitrust authorities of the government
d. a revolution from Ford stockholders
e. announcements by GM and Dodge that plans are underway to produce a much cheaper pick-up truck in six years
B
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Recall the Application. If country A has a lower overall income tax rate than country B, and labor can freely and easily move between the two countries, real wages in country A will tend to ________ and employment in country A will tend to ________
A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase
Which statement most accurately captures the state of money today?
A) Money today includes currency, bank deposits and checks. B) Money today includes currency and checks but not bank deposits. C) Money today includes bank deposits and currency but not checks. D) Money today includes bank deposits and checks but not currency. E) Money today includes checks and credit cards.
If the price level increases and workers' money wage rates remain constant,which of the following will occur?
I. The quantity of labor supplied will decrease. II. The real wage rate will decrease. III. The labor supply curve will shift rightward. A) I only B) I and II C) II and III D) I, II and III
The amount of calendar time associated with the long run
A. varies by industry. B. is less than five years. C. is between one and five years. D. is greater than one year.