The dollar price of a good relative to the average dollar price of all other goods and services is the good's:
A. nominal price
B. equilibrium price
C. market price
D. real price
Answer: D
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Refer to the above figure. Where are the poorest households represented on the graph?
A) The poorest households are to the left along the horizontal axis. B) The poorest households are to the right along the horizontal axis. C) The poorest households are all along the horizontal axis. D) The poorest households are concentrated in the middle.
Which of the following decreases the supply of labor that competes with union labor?
A) an increase in the minimum wage B) an increase in the demand for imported goods C) new laws that restrict immigration D) All of the above would cause a decrease in the supply of labor that competes with union labor.
If a certain automotive part can be purchased in Mexico for 60 pesos or in the United States for $6.25 and if the nominal exchange rate is 8 pesos per U.S. dollar, then the automotive part:
A. is more expensive in the United States. B. is less expensive in Mexico. C. is less expensive in the United States. D. costs the same in Mexico and the United States.
Exhibit 15-1 Production possibilities curves
In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Pada the cost of producing one more unit of corn is equal to:
A. 3 units of wheat. B. 3 units of corn. C. 1/3 unit of wheat. D. 15 units of wheat.