A quota is a
a. tax imposed on each unit of an exported good
b. tax imposed on each unit of an imported good
c. change in the terms of trade between two nations
d. result of opportunity cost differentials between two nations
e. restriction on the quantity of a good that may be imported
E
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Labor productivity growth depends on
i. saving and investment. ii. increases in human capital. iii. technological growth. A) Both ii and iii B) ii only C) i, ii, and iii D) iii only E) i only
Jennifer lives in two periods. In the first period, her income is fixed at $72,000; in the second, she is gets a 4% raise in her income. She can borrow and save at the market interest rate of 5 percent.
(A) Sketch her intertemporal budget constraint. (B) Suppose that Jennifer is unable to lend at any rate of interest, although she can still borrow at 5 percent. Sketch her new intertemporal budget constraint.
If the minimum wage is set at a level above the equilibrium wage:
A. it will have no effect. B. it will be a nonbinding minimum wage. C. it could cause unemployment. D. All of these are true.
In economics, the concept of opportunity cost is:
a. negated by ensuring that the government has a role in a capitalist society. b. defined to be the highest-valued alternative that must be forgone when a choice is made. c. best illustrated by knowing why consumers choose one good over another. d. quantifiable only if you know the real dollar price of the goods and services you are giving up to consume something. e. the methodology that government economists use to determine the total amount of the national debt.