When exchange rates are very volatile, with a wide range of variation, the currency is said to be:
a. in limbo.
b. in free float.
c. perfectly flexible.
d. in sluggish float.
Ans: b. in free float.
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Refer to Figure 7.1. Start from initial equilibrium. If firms increase their capital stock, the new real wage could be ________ and the new amount of labor employed could be ________
A) X; A B) Z; A C) X; C D) Z; C
One common source of market failure is
A) perfect information. B) pollution. C) private goods. D) perfect competition.
If Marie buys a sailboat, which increases the productivity of her leisure time, she
a. increases her productivity of nonmarket work b. increases her productivity of market work c. will spend less time in nonmarket work d. will spend less time in leisure activities e. will spend more time in market work to pay for the boat's maintenance
Which of the following is a cause of the changing role of women in American society over the past several decades?
a. new technologies that have reduced the amount of time required to complete routine household tasks b. improved birth control c. changing political and social attitudes d. All of the above are correct.