If the exchange rate moves from 10 Mexican pesos per U.S. dollar to 12 Mexican pesos per U.S. dollar, then the Mexican peso has ________ and the U.S. dollar has ________.
A. appreciated; appreciated
B. depreciated; depreciated
C. depreciated; appreciated
D. appreciated; depreciated
Answer: C
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Because leisure is a normal good, an increase in the wage rate will result in
A) an increase in the quantity of labor supplied because of the substitution effect. At low wages the income effect causes an increase in the quantity of labor supplied, but at high wages the income effect causes a decrease in the quantity of labor supplied as the wage rises. B) an increase in the quantity of labor supplied because of both the substitution effect and the income effect. C) a decrease in the quantity of labor supplied because of the substitution effect and an increase in the quantity of labor supplied because of the income effect. D) an increase in the quantity of labor supplied because of the substitution effect and a decrease in the quantity of labor supplied because of the income effect.
The total quantity of a good that all buyers in the market would buy at various prices at a given time is known as
a. individual demand. b. conglomerate demand. c. market demand. d. additive demand.
A solution to the budget-gaming problem is
a. Introduce milestones or kinks in the compensation scheme b. Use a target based pay function with each target scoring greater return c. Do not base compensation on meeting a particular budget goal d. All of the above
A firm uses two inputs, A and B. At its optimal choice of input proportions,
a. MRP of A = MRP of B. b. MRPA/PA = MRPB/PB. c. MPP of A = MPP of B. d. All of the above are correct.