If the price level rises by 4 percent in a year and nominal wages increase by 2 percent, then real wages will:
A. Decrease by 6 percent
B. Decrease by 4 percent
C. Decrease by 2 percent
D. Increase by 2 percent
C. Decrease by 2 percent
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________ of a foreign bank operates in the U.S. but cannot accept deposits from domestic residents
A) An agency office B) A universal corporation C) A McFadden corporation D) A Basel branch
An industry where the capital-labor ratio is relatively high is characterized as
A. capital intensive. B. labor intensive. C. income intensive. D. market intensive.
For activities in which the benefits are concentrated and the costs widespread, governments are likely to undertake
a. too little of these activities relative to what would be efficient. b. too much of these activities relative to what would be efficient. c. exactly the amount of these activities that would be efficient. d. none of these activities.
When the supply of workers is plentiful, one would predict that market wages would be
a. determined solely by factors that affect supply. b. determined solely by factors that affect demand. c. low, other things equal. d. high, other things equal.