The table above gives data for the nation of Mosh. If real GDP is $6 trillion, then
A) firms increase production because inventories are less than their target levels.
B) the economy has reached equilibrium and no change in production will occur.
C) firms increase production because inventories exceed their target levels.
D) firms decrease production because inventories exceed their target levels.
E) We need more information to determine whether firms increase, decrease, or do not change their production.
A
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If 1,000 Mexican pesos could buy $1.00 U.S. in 2006 and $0.87 U.S. in 2010, it implies that _____
a. the dollar depreciated against the peso b. the peso appreciated against the dollar c. the dollar strengthened against the peso d. the peso strengthened against the dollar
Why is labor productivity so much lower in developing countries than in developed countries?
a. People concentrate more on theoretical education than on technical experience in developing countries. b. Income per capita is too low in developing countries to support investment in human and physical capital. c. High capital-labor ratio in the developing nations leads to lower productivity. d. Factors of production in developing countries are usually owned by the government.
What happens when wages are set above the equilibrium level by law?
What will be an ideal response?
A labor contract provides for a first-year wage of $10 per hour, and specifies that the real wage will rise by 3 percent in the second year of the contract. The CPI is 1.00 in the first year and 1.07 in the second year. What dollar wage must be paid in the second year?
A. $11.02 B. $10.70 C. $10.90 D. $10.30