The international substitution effect exists because a
a. higher price level will reduce interest rates and stimulate foreign investment.
b. lower price level will make domestically produced goods less expensive relative to foreign goods.
c. higher price level will reduce the purchasing power of money.
d. lower price level will encourage Americans to import more foreign goods.
B
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The major change in American labor markets this century is
A) the steady rise of the unemployment rate. B) the steady rise of the employment rate. C) the increase in the labor-force participation rate. D) the increase in the female labor-force participation rate.
Economic theory assumes elected and appointed government officials
A) place their personal or private welfare ahead of the public interest. B) place the public interest ahead of any personal or private interests of their own. C) are free to pursue the public interest because they aren't constrained by competition. D) respond to the anticipated costs and benefits to themselves of decisions contemplated.
When the long-run average total cost curve is increasing, this means that there are
a. economies of scale b. diseconomies of scale c. constant returns to scale d. diminishing returns e. some fixed factors of production
If, in the experience of a manager of a large company who hires for hundreds of positions per year, whites are more likely than blacks to leave within a year, then a manager who hires only blacks to save money is
A. perfectly within his rights. B. employing statistical discrimination and violating the law. C. violating the law. D. employing statistical discrimination.