If a firm hires its fourth worker for $5 and its fifth worker for $8, then
a. the firm is a monopolist.
b. the firm must be substituting capital for labor.
c. the fifth worker must have been less productive than the fourth.
d. the firm is not maximizing its profit.
e. the labor market is not perfectly competitive.
e
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Use the following graph, which shows the market for euros, to answer the next question.
Assume the United States and European governments adopt a system of flexible exchange rates. If currency traders think the European economy will experience a recession and the U.S. economy will not, this will most likely cause ________.
A. the euro to depreciate B. the U.S. dollar to depreciate C. the supply of euros to decrease D. the euro to appreciate
The above figure shows the market for 2 bedroom town homes in San Diego. If a rent ceiling is set at $1,000 per month, what is the maximum rent someone is willing to pay in the black market?
A) $1,300 per month B) $1,000 per month C) $900 per month D) $1,100 per month E) $1,400 per month
In monopolistic competition, there are ________
A) many firms selling products for which no good substitutes exist B) many firms selling similar but slightly different products C) many firms, each selling an identical product D) a small number of firms, each selling an identical product
Identify the countries that depend largely on United States for trade
a. China and Japan b. U.K. and Germany c. Canada and Mexico d. France and Belgium e. Canada and U.K