A price level increase tends to reduce net exports, thereby reducing the amount of real goods and services purchased in the United States. Economists refer to this phenomenon as
A. the open-economy effect.
B. the barrier effect.
C. the wealth effect.
D. the Gross Domestic Product (GDP) effect.
Answer: A
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If the average cost of transporting a passenger on the train from Chicago to St. Louis is $75, it would be irrational for the railroad to allow any passenger to ride for less than $75
a. True b. False Indicate whether the statement is true or false
Refer to the figure above. What is the equilibrium employment when the labor demand curve is LD2 and the labor supply curve is LS2?
A) 10 units B) 20 units C) 5 units D) 15 units
How do economic profits and losses allocate resources in an economy?
What will be an ideal response?
Hiring a sports celebrity to advertise a car dealership is a way of
A. screening those who aren’t willing to pay as much for a car. B. statistically discriminates potential buyers who like sports. C. signaling the quality of the cars because it is costly to hire that celebrity. D. a waste of the dealership’s money because celebrities aren’t car experts.