Adjustment costs include:
a. dealing with child labor issues.
b. human rights.
c. getting used to foreign products.
d. short-term unemployment.
Ans: d. short-term unemployment.
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"The velocity of circulation is the average speed with which money is loaned to businesses and households." Is the previous statement correct or incorrect?
What will be an ideal response?
A decrease in the required reserve ratio will:
a. reduce commercial bank loans and reduce the money supply. b. increase commercial bank loans and reduce the money supply. c. increase commercial bank loans and increase the money supply. d. decrease commercial bank loans and increase the money supply.
Suppose a perfectly competitive market results in a long-run equilibrium price of $8 and quantity of 500. If this same market were a monopoly, which of the following price and quantity combinations would be the most likely?
A. Price: $10, Quantity: 350 B. Price: $8, Quantity: 500 C. Price: $6, Quantity: 650 D. Price will equal marginal revenue and quantity will be found where marginal revenue equals marginal cost.
If the cost of a typical basket of goods in the U.S. is $100 and in France it is 400 euros, and the nominal exchange rate is 2 euro per dollar, what is the real exchange rate?
A. 2.0. B. 1.5. C. 1.0. D. 0.5.