If in a system of fixed exchange rates the dollar price of euros is above the market equilibrium level:
A. gold will flow from the United States to Europe.
B. there will be a surplus of euros.
C. the U.S. government will have to ration euros to U.S. importers.
D. there will be a shortage of euros.
B. there will be a surplus of euros.
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Resources are used to create goods and services.
Answer the following statement true (T) or false (F)
Comparative advantage is a comparison among producers based on opportunity cost.
Answer the following statement true (T) or false (F)
Which of the following increases in labor demand is due to a change in the price of a related resource?
A. A decrease in the price of wood decreases the cost of furniture, thus increasing the demand for furniture workers. B. Snowboarding increases in popularity, thus increasing the demand for the workers who make snowboards. C. A technological change increases output per worker in the computer industry, thus increasing the demand for computer workers. D. Software sales rise, thus increasing the demand for software developers.
Suppose the current equilibrium wage rate for lifeguards in Houston is $7.85 an hour. A minimum wage law that creates a price floor of $8.50 an hour leads to
A) a surplus of lifeguards in Houston. B) a shortage of lifeguards in Houston. C) no changes in the lifeguard market. D) a change in the quantity of lifeguards supplied but no change in the quantity of lifeguards demanded. E) an increase in the number of lifeguards employed.