When a country's labor market is in equilibrium in the specific factors model, the wage rate
A) will be the same in both sectors.
B) will be higher in the export-competing sector.
C) will be higher in the import-competing sector.
D) will be higher in the sector where product price is higher.
E) will be higher in the sector where product price is lower.
A
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According to the substitution effect, when the price of a good increases, consumers ______.
a. switch to another similar good b. buy less of it due to their budget constraints c. gain less utility from that good d. experience consumer equilibrium
A total cost function will start
A. at the origin if there are fixed costs. B. on the vertical axis if there are no fixed costs. C. on the horizontal axis. D. on the vertical axis if there are fixed costs.
If the monetary policy reaction curve has a relatively steep slope, the dynamic aggregate demand curve is likely to have a:
A. zero slope. B. relatively flat slope. C. relatively steep slope. D. positive slope.
If $2 = 1 euro, then the equivalent U.S. dollar price of a vase selling for 30 euros in France is ______.
a. $10 b. $15 c. $30 d. $60