Under fixed rates, which one of the following statements is the MOST accurate?
A) Monetary policy can affect only output.
B) Monetary policy can affect only employment.
C) Monetary policy can affect only international reserves.
D) Monetary policy can not affect international reserves.
E) Monetary policy can only affect money supply.
C
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A tariff imposed by the United States on Japanese cars ________ the price of cars in the United States and ________ the quantity of Japanese cars imported into the United States
A) raises; increases B) raises; decreases C) lowers; increases D) lowers; decreases
Mexico has a comparative advantage in producing corn:
A. regardless of the opportunity cost in other countries. B. if its opportunity cost of producing corn is higher than the opportunity cost in other countries. C. if its opportunity cost of producing corn is lower than the opportunity cost in other countries. D. if its opportunity cost of producing corn is the same as the opportunity cost in other countries.
Which of the following would be most likely to have monopoly power?
a. a long-distance telephone service provider b. a local cable TV provider c. a large department store d. a gas station
Javier is a member of a teachers union. The union recently failed to secure a wage increase as part of a new agreement. Instead, the wage will remain roughly 5 percent higher than comparable jobs in the nonunion sector. How will this affect Javier’s job security?
a. His job security will not change much because keeping wages constant will not create changes in demand for or supply of labor. b. His job will be less secure because the collective bargaining failure shows declining demand for teachers. c. His job will be more secure because it will drive many of the union teachers to find nonunion jobs. d. His job will be less secure because the announcement will lead to a large influx of nonunion teachers.