Why does the trade-off between consumption goods and capital goods represent a trade-off between the present and the future?
What will be an ideal response?
This is because consumption goods are for current satisfaction but capital goods are goods that can be used for producing consumption goods in the future. Society that reduces the production of consumption goods in favor of capital goods will result in more consumption goods in the future.
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Everything else equal, an increase in the supply of dollars in exchange for pesos:
A) will cause the dollars to depreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market. B) will cause the dollars to appreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market. C) will cause the dollars to depreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market. D) will cause the dollars to appreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market.
The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 400 and Qd = 500 - 0.02W, where W is the annual wage of a coal miner and Q is the number of coal miners. What wage must be paid at the profit maximizing quantity of coal miners?
A. $23,333 B. $16,670 C. $13,336 D. $21,667
The product supplied by a monopoly firm has
A. a few substitutes. B. no close substitutes. C. a large number of substitutes. D. two or three close substitutes.
For any competitive labor market, what change would have to occur to cause the labor supply to increase and shift the supply curve right?
A. Opportunity cost of work decreases B. Number of firms increases C. Number of workers decreases D. Opportunity cost of work increases