A country that fixes a price for its currency that is below the market price will:
A. decrease its money supply.
B. eventually increase the value of its currency.
C. lose official reserves.
D. accumulate official reserves.
Answer: D
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In the figure above, what is Gap's excess capacity?
A) 32 jackets per day B) zero C) 4 jackets per day D) 132 jackets per day
The backward-bending supply curve for labor shows how an increase in wages affects the number of hours worked. The “backward bend” is the part of the curve that shows that some people:
a. have no flexibility in the number of hours they work. b. work more hours when income rises. c. work more hours when income falls. d. work fewer hours when income rises.
Nominal income:
A. Reflects the purchasing power of money. B. Is income adjusted for inflation. C. Is the amount of money income, measured in current dollars. D. Is the amount of money income, measured in constant dollars.
A person should consume more of something when its marginal:
A. benefit exceeds its marginal cost. B. cost exceeds its marginal benefit. C. cost equals its marginal benefit. D. benefit is still better.