The exchange-rate effect helps explain what feature in the aggregate demand and aggregate supply model?
why the aggregate-demand curve slopes downward
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Someone who wants to rent an urban lot in order to grow vegetables should expect the rental cost to reflect the
A) expenses incurred in developing the lot. B) fact that land is a free gift of nature. C) property taxes paid on the lot. D) value of the lot to other people who would also like to use it.
Economists have noted that businesses of a certain type tend to congregate geographically, attracting workers with skills in those fields. This, in turn, lures more firms seeking employees with those skills
Some examples include commercial banking, software development, and the automobile industry. What mechanism is at work here? Briefly explain how the mechanism works to the advantage of employers and employees.
Which of the following sayings best reflects the concept of opportunity cost?
a. "You can't teach an old dog new tricks." b. "There is no such thing as a free lunch." c. "I have a baker's dozen." d. "There's no business like show business."
Which of the following is most likely to result if the Congress passes the living wage law?
a. Cost-push inflation b. Demand-pull inflation c. Deflation d. Recession e. Stagnation