Suppose the domestic price (no-international-trade price) of wheat is $3.50 a bushel in the United States while the world price is $4.00 a bushel. Assuming no transportation costs, the United States will:
A. have a domestic shortage of wheat.
B. export wheat.
C. import wheat.
D. neither export nor import wheat.
B. export wheat.
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An increase in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run?
A) The price level will rise, and the level of GDP will fall. B) The price level will rise, and the level of GDP will be unaffected. C) The price level will fall, and the level of GDP will fall. D) The price level will fall, and the level of GDP will rise.
Which of the following do economists believe is the main cause of the growing wage gap between high-skilled and low-skilled workers?
a. employer-sponsored retraining programs b. reductions in unemployment benefits c. antiunion legislation d. advances in technology
How is perfect competition similar to and different from monopolistic competition?
What will be an ideal response?
Suppose the manager of a restaurant notices that when she has too many waiters on the floor for a shift that the waiters get in each other's way and fewer dinners are served. This is an example of
A) diminishing marginal product. B) diminishing marginal utility. C) diminishing marginal workforce. D) diminishing marginal inputs.