If interest rates in Canada rise above those in the rest of the world, then
a. the demand for Canadian dollars decreases
b. exports from Canada to other countries increases
c. imports into Canada from other countries decreases
d. it raises Canada's exchange rate and this may result in a deficit on Canada's current account
e. the balance of payments becomes negative
D
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Suppose the supply of land is infinitely inelastic and the demand for land is downward sloping but inelastic at the current equilibrium. If the supply curve shifts rightward (e.g
, previously unusable land is cleared for production), what happens to the aggregate economic rents in this market? A) Decrease B) Increase C) Remain the same D) We do not have enough information to answer this question.
Labor (# of employees)Total Output0011025031104160520062307255827592901030011305Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. Adding a third worker increases production:
A. by more than the second worker. B. to 110 hats. C. by 60 hats. D. All of these are true.
As workforces become more educated in countries with comparative advantage in labor-intensive products, the comparative advantage for the production of those labor-intensive goods shifts:
A. away from countries with more cheap labor relative to other factors of production. B. toward other countries with less cheap labor relative to the other factors of production. C. toward countries with more capital for production. D. toward other countries with more cheap labor relative to the other factors of production.
Bonds sold by the U.S. government that offer a certain real interest rate are known as
A) zero-coupon bonds. B) Treasury Inflation-Protected Securities. C) denominalized securities. D) savings bonds.