Pauline is offered a Job in Minneapolis that pays $80,000 . She is offered a similar job in Louisville that pays $71,200 . Which pair of CPIs would ensure that the two salaries have the same purchasing power?
a. 90 in Minneapolis and 83 in Louisville
b. 90 in Minneapolis and 72 in Louisville
c. 100 in Minneapolis and 89 in Louisville
d. 105 in Minneapolis and 90 in Louisville
c
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Market demand curves may slope downward even if some individual demand curves do not because
A. the law of demand requires that this is true. B. lower prices may bring more purchasers into the market. C. merchants try to sell more at lower prices. D. people believe expensive goods are better goods.
North's (1955) theory of economic location is that of "balanced growth"—many industries in each region must advance at about the same time in order for economic growth to occur
Indicate whether the statement is true or false
An increase in a country's rate of inflation is apt to
A) reduce its imports and improve its trade balance. B) lower its nominal rate of interest and encourage an inflow of capital. C) worsen its balance of trade and balance of payments. D) decrease demand for the country's currency.
Monopsonistic exploitation refers to
A) the payment to the resource equal to MFC. B) the payment to a resource less than MRP. C) the payment to a resource equal to MRP. D) the payment to a resource above MRP.