Which of the following decreases in labor demand is due to a change in the price of a related resource?
A. A decline in the demand for computers in Europe reduces the demand for workers in the domestic computer industry
B. The rise of hair salons for both men and women reduces the demand for barbers
C. A decrease in the educational skills of manufacturing workers decreases the demand for such workers
D. An increase in the price of chemical equipment increases the cost of producing fertilizer, thus decreasing the demand for workers who make fertilizer
Ans: D. An increase in the price of chemical equipment increases the cost of producing fertilizer, thus decreasing the demand for workers who make fertilizer
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The present value of $1,500 received 8 years in the future would be calculated as which of the following when the interest rate is 3%?
A) 1,500/(1.03)8 B) 8.03/1,500 C) 1,500 × 1.3 × 8 D) 1,500/(1.3)8
Limited liability is a benefit to
A) sole proprietorships. B) partnerships. C) corporations. D) All of the above.
Which of the following is true?
A. Keynes asked the question: If supply creates its own demand, why are we in a worldwide depression? B. According to Keynes, if savings were greater than investment, interest rates would fall, bringing the economy back to full employment. C. Keynes believed that wages and prices were flexible. D. Keynes believed the economy was basically stable.
If Japanese tourists visit Yellowstone Park, what is the effect in the foreign-exchange market?
A. It will increase demand for U.S. dollars. B. It will decrease demand for U.S. dollars. C. It will increase supply of U.S. dollars. D. It will decrease supply of U.S. dollars.