Imposing an import quota causes the domestic real exchange rate to
a. appreciate, which increases foreign demand for domestic goods.
b. appreciate, which decreases foreign demand for domestic goods.
c. depreciate, which increases foreign demand for domestic goods.
d. depreciate, which decreases foreign demand for domestic goods.
b
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By the end of the colonial period in U.S. history, slaves in the colonies
(a) owned land communally. (b) had status in courts. (c) helped meet a labor need. (d) were born in Europe and shipped to the colonies.
When the price level falls, the total quantities of goods and services demanded:
a. decreases. b. stays the same. c. increases. d. increases and then decreases. e. decreases and then increases.
Which of the following would tend to raise real wages? a. An increase in the demand for labor and no change in the supply of labor
b. A decrease in the demand for labor and no change in the supply of labor. c. An increase in the demand for labor that is greater than an increase in the supply of labor. d. Either (a) or (c).
Suppose that firms are located in a circle on an island. You are given transportation costs, fixed costs, variable costs, and demand (assume that customers are spread evenly along the circle). As transportation costs on the island rise,
A. the number of firms will fall in the long run. B. the number of firms will rise in the long run. C. the number of firms will stay the same in the long run. D. It is impossible to tell from the information given.