If the demand for a consumer good decreases, the demand for resources required to make the good will
a. increase.
b. remain the same, but the quantity demanded will increase.
c. decrease.
d. increase or decrease depending on whether the demand for the product is elastic or inelastic.
C
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As long as trade across borders is unrestricted and exchange rates adjust freely, the purchasing power parity theory predicts that the exchange rate between two national currencies will adjust in the
a. short run because of the actions of arbitrageurs b. long run to reflect differences in the nations' price levels c. long run to reflect changes in the governments' trade policies d. short run because of the actions of speculators e. long run to reflect differences in military power
Consider a good to which a per-unit tax applies. The size of the deadweight that results from the tax is smaller, the
a. less elastic is the demand for the good. b. less elastic is the supply of the good. c. smaller is the amount of the tax. d. All of the above are correct.
Why did the unemployment rate drop from the early 1980s to 2000?
a. More adults than average dropped out of the labor force because they were discouraged. b. People became more productive and more workers were hired. c. The demographics of the labor force changed significantly during this period. d. The U.S. economy generated an additional 35 million jobs as it was growing.
Exhibit 9-6 Monopoly
?
When the monopolist is maximizing total profit in Exhibit 9-6, the average total cost of producing that output level is:
A. $4. B. $6. C. $7. D. $8.