Suppose you observe that with a given supply curve, the Peruvian demand for Argentinean pesos steadily decreases. This will most likely mean:
a. the supply of Peruvian nuevos soles has increased on the foreign exchange market.
b. the Argentinean peso will appreciate in value relative to the Peruvian nuevo sol.
c. the Argentinean peso will depreciate in value relative to the Peruvian nuevo sol.
d. the Peruvian demand for Argentinean goods has increased.
e. the supply of Argentinean pesos has increased on the foreign exchange market.
c
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The decision rule for a profit-maximizing firm operating in a competitive market to hire an additional worker is the value of the:
A) marginal product of the worker should be equal to or greater than the wage rate. B) marginal product of the worker should be equal to or lower than the wage rate. C) average product of the worker being hired should be equal to the wage rate. D) average product of the worker being hired should be lower than the wage rate.
Which of the following is an example of a negative externality?
a. Planting flowers in your front yard. b. Talking loudly when others are trying to study economics. c. People donating money to charity. d. The price of bread increases. e. Accidentally pushing someone as you try to cross the street.
If we compare income mobility in relative terms, we would measure whether a person's income:
A. is higher at the end of her career compared to the beginning. B. is higher than her parents' income. C. places her higher up in the income distribution than her parents' income. D. rises with age for all people.
Consider the following four investors. Rank each according to who has the most to gain from investing in 30-year tax-exempt municipal bonds. Each investor has $1,000 in a savings account that he/she plans to use to buy bonds. Explain briefly why you ranked the investors this way.(a) A 20-year old college student who earns low income through working over summers and breaks. The student plans to graduate next year.(b) The CEO of a large company who is currently in the highest tax bracket.(c) A middle-income household saving up to move into a larger home.(d) A 60-year old nurse who plans to retire at age 62. He uses a tax-exempt pension fund for all of his savings.
What will be an ideal response?