When the money market is drawn with the value of money on the vertical axis, as the price level decreases the quantity of money
a. demanded increases.
b. demanded decreases.
c. supplied increases.
d. supplied decreases.
b
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Refer to the figure above. When the monopolist is free to set the price, ________
A) it makes a profit of $150 B) it makes a loss of $150 C) it makes a profit of $300 D) it makes a loss of $300
Since demanders of a good are concerned with the total price they have to pay for a good, a unit tax on the good will _____
a. shift the supply curve downward by the entire amount of the tax b. shift the supply curve upward by the entire amount of the tax c. shift the demand curve downward by the entire amount of the tax d. shift the demand curve upward by the entire amount of the tax
When an employer pays the cost of educating a worker, it is likely that the employer
a. is demonstrating altruistic motives. b. is pursuing some objective other than profit-maximization. c. hopes to recapture his investment in the form of increased labor productivity. d. receives reimbursement from the government for the cost of the education.
If the U.S. real exchange rate appreciates, U.S. exports to Europe
a. and European exports to the U.S. both rise. b. and European exports to the U.S. both fall. c. rise, and European exports to the U.S. fall. d. fall, and European exports to the U.S. rise.