If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices.
B. lower level of output and prices.
C. higher level of output and prices.
D. lower level of output at higher prices.
Answer: A
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Economic benefits to nations in a currency union will be larger whenever:
A) the volume of transactions between the nations is larger and there is a greater degree of economic integration. B) the volume of transactions is smaller but there is a greater degree of economic integration. C) trade and financial flows between the nations are erratic. D) financial integration is lower but cultural integration is higher.
Suppose that the Home country in the twosector (manufacturing and agriculture) specificfactors model has a comparative advantage in manufactured output. Will workers be better or worse off following the opening of trade with other countries?
a. Workers will be better off because the nominal wage increases. b. Workers will be worse off because the nominal wage decreases. c. Workers may be better off or worse off because the real wage in terms of the agricultural good rises and the real wage in terms of the manufactured good falls. d. Workers may be better off or worse off because the real wage in terms of the agricultural good falls and the real wage in terms of the manufactured good rises.
If the unit price of a product is P and buyers buy a given quantity Q, then sellers would collect total revenues equal to:
A. P x Q B. P + Q C. P - Q D. Q - P
For the Fall semester, you had to pay a nonrefundable fee of $600 for your meal plan, which gives you up to 150 meals. If you eat all of the meals, your average cost for a meal is:
A. $5. B. $4. C. $6. D. $0.25.