Figure 36-7
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In Figure 36-7, there are three aggregate expenditure functions (C + I + G + X? IM) for an open economy. Which of the following would cause a movement from A to B?
A. An increase in interest rates
B. An appreciation of the dollar
C. A depreciation of the dollar
D. An increase in the U.S. price level
Answer: C
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In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from across the border would
A) move the point of production along the production possibility curve. B) shift the production possibility curve outward, and increase the production of both goods. C) shift the production possibility curve outward and decrease the production of the labor-intensive product. D) shift the production possibility curve outward and decrease the production of the capital-intensive product. E) shift the possibility curve outward and displace preexisting labor.
Nicky makes $25,000 a year as a sales clerk. He then decides to quit his job to enter a MBA program full-time (assume Nicky doesn't work in the summer or hold any part-time jobs). His tuition, books, living expenses, and fees total $15,000 a year. Given this information, the annual total cost of Nicky's MBA studies is:
a. $10,000. b. $30,000. c. $40,000. d. $15,000. e. $25,000.
When does the fiscal year begin for the U.S. federal government?
a. January 1 b. April 1 c. July 1 d. October 1
What effect does an increase in the price of the firm's output have on its demand curve for labor? Why?
What will be an ideal response?