An American brewery sells dollars to obtain euros. It then uses the euros to buy brewing equipment from a German company. These transactions
a. increase U.S. net capital outflow because Germans obtain U.S. assets.
b. decrease U.S. net capital outflow because Germans obtain U.S. assets.
c. increase U.S. net capital outflow because the U.S. buys capital goods.
d. decrease U.S. net capital outflow because the U.S. buys capital goods.
b
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Public policy towards externalities becomes important when _____
a. transactions costs are zero b. transactions costs are low c. transactions case are high d. there is no relationship between transactions costs and externalities
At a given level of labor employment, knowing the difference between the average product of labor and the marginal product of labor tells you
A) whether increasing labor use raises output. B) whether increasing labor use changes the marginal product of labor. C) whether economies of scale exist. D) whether the law of diminishing returns applies. E) how increasing labor use alters the average product of labor.
Refer to the above diagram for the milk market. There would be a shortage of milk whenever the price is:
Higher than $2.00 per gallon Lower than $1.50 per gallon Higher than $1.50 per gallon Lower than $2.00 per gallon
The figure above shows the U.S. demand for labor curve. If there is a simultaneous increase in the nominal wage rate of 10 percent and a 10 percent increase in the price level, there will be a
A) movement upward along the demand for labor curve from a point such as C to a point such as B. B) leftward shift of the demand for labor curve. C) movement downward along the demand for labor curve from a point such as A to a point such as B. D) rightward shift of the demand for labor curve. E) None of the above answers is correct because there is no change in the demand for labor curve.