Technological innovations and the increasing mechanization of industry:
a. have led to long-run aggregate unemployment that is difficult to eradicate.
b. have led to lower wages for skilled workers.
c. mean higher prices for consumers.
d. ultimately create new jobs that replace old jobs.
d. ultimately create new jobs that replace old jobs.
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Suppose the GDP deflator in the United States is 125 and the GDP deflator in Japan is 100. Also assume the United States has trade barriers on Japanese goods in the form of quotas
What does this imply about the exchange rate of yen per dollar under the theory of purchasing power parity in the long run? A) The exchange rate of yen per dollar will be equal to 1.25. B) The exchange rate of yen per dollar will be greater than 0.8. C) The exchange rate of yen per dollar will be less than 0.8. D) The exchange rate of yen per dollar will be equal to 0.8.
A market:
A. reflects upsloping demand and downsloping supply curves.
B. entails the exchange of goods, but not services.
C. is an institution that brings together buyers and sellers.
D. always requires face-to-face contact between buyer and seller.
Suppose political unrest in a major oil producing country leads to a reduction in the supply of crude oil, a resource used to produce gasoline. If the government fixes the price of gasoline in order to prevent price gouging, which of the following will result?
a. The supply of gasoline will increase, because suppliers still need to sell gas. b. The demand for gasoline will decrease, because consumers will curb consumption at the fixed price. c. A shortage of gasoline will occur, because at the fixed price consumers will not have incentive to decrease consumption. d. Everyone will be able to purchase the desired amount of gas, because at the fixed price both sellers and buyers will carry on business as usual.
Exhibit 1A-8 Straight line relationship
Which of the following would cause a shift in the relationship shown in Exhibit 1A-8?
A. A fall in household incomes. B. A fall in the price of pizza. C. A fall in the quantity of pizza that people wish to purchase. D. A rise in the price of pizza.