Other things being constant, if the U.S. real rate of interest exceeds that of its trading partners, we expect
A. an appreciation of U.S. currency.
B. a worsening of the U.S. balance of payments.
C. political instability in the United States.
D. that a "dirty float" will emerge.
Answer: A
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The principle of opportunity cost
A) is applicable to all decision-making. B) only refers to monetary payments. C) is more relevant for firms than for individuals. D) is only relevant in economics.
The short-run supply curve for a perfectly competitive firm is its marginal cost curve above the minimum point on the
A) average fixed cost curve. B) average variable cost curve. C) average total cost curve. D) demand curve.
A difference in wages that arises to offset the nonmonetary characteristics of different jobs is known as
a. a compensating differential. b. an inefficiency wage. c. the equilibrium difference. d. a union wage.
An increase in the size of the working-age population:
A. increases labor supply. B. decreases labor supply. C. increases labor demand. D. decreases labor demand.