Which of the following is a long-run adjustment?
A. A restaurant hires a new chef.
B. A bank hires a new CEO.
C. A company hires ten new management trainees.
D. A company relocate to a new headquarter in another city.
Answer: D
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An overvalued exchange rate is an exchange rate:
A. that equals the number of units of a foreign currency over the number of units of domestic currency. B. at which the quantities of currencies demanded and supplied in the foreign exchange market are equal. C. that has an officially fixed value greater than its fundamental value. D. that has an officially fixed value less than its fundamental value.
A number of states have a minimum wage that is higher than the federal minimum. In those states that impose such a minimum wage, it is more likely that the minimum wage acts as a binding:
A. price floor, causing excess supply in the market. B. price floor, causing excess demand in the market. C. price ceiling, causing excess demand in the market. D. price ceiling, causing excess supply in the market.
A market served by only one firm is called a(n):
A. perfectly competitive market. B. monopoly. C. oligopoly. D. Any of these could be correct.
When Toyota introduced its 2010 Prius, it announced that the average retail price of the 2010 model would be lower than the average retail price was for the equivalent 2009 model. Which of the following would explain the price differential?
A) The supply of the Prius had decreased, and the demand for the Prius remained unchanged. B) The demand for the Prius had increased, and the supply of the Prius remained unchanged. C) The demand for the Prius had decreased, and the supply of the Prius had increased. D) The demand for the Prius had increased, and the supply of the Prius had decreased.