Economic variables that tend to move in tandem with the overall phases of the business cycle are called leading indicators
Indicate whether the statement is true or false
FALSE
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Consider a fall in the wage rate. How does the substitution effect change the amount of labor that a firm hires? How does the scale effect change the amount of labor that a firm hires? What do these effects imply about the firm's long-run demand for labor?
What will be an ideal response?
If a toy costs 30 yuan in China, how much will it cost in dollars, if the exchange rate is 6 yuan per dollar?
What will be an ideal response?
In the figure above, the point labeled C in the production possibilities frontier
A) is unattainable; it is beyond the productive capability of this country. B) represents a highly desirable output level in the long run, because it conserves scarce resources. C) represents either unemployed or inefficiently utilized resources. D) represents the maximum sustainable output level for this nation in the long run.
International trade and competition from abroad
a. provide domestic producers with a strong incentive to improve the quality of their products and keep their costs low. b. will make it more difficult for domestic producers to realize fully the potential gains from economies of scale in production. c. will make it more difficult for domestic consumers in small countries to purchase from large scale producers. d. do all of the above. e. do none of the above.