Appreciation of the Canadian dollar will
A. intensify an existing disequilibrium in Canada's balance of payments.
B. make Canada's exports less expensive and its imports more expensive.
C. make Canada's exports more expensive and its imports less expensive.
D. make Canada's exports and imports both more expensive.
C. make Canada's exports more expensive and its imports less expensive.
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Which of the following demand factors are under the control of management?
a. price of product b. advertising c. price of competitors' products d. customer service e. all except c
Appendix: Winning an auction can be exhilarating, but it can also lead to doubt as to whether you did the right thing or not. This is called:
a. The regret effect. b. Moral hazard. c. Second wind. d. The winner's curse.
Suppose workers at the bakery discover that a new firm making baseballs came to town and is offering higher wage rates. What will happen in the labor market for bakers?
a. The labor supply curve will shift to the right. b. Demand for bakers will increase because the MPP of bakers will decrease. c. The quantity supplied of labor will increase because the wage rate will decrease. d. The MRP of bakers will increase. e. The labor supply curve will shift to the left.
If the economy is experiencing inflationary boom, and the government lowers taxes in an effort to balance the budget, the Keynesian model indicates the likely effect will be to
a. counteract inflation. b. reduce the trade deficit. c. continue inflationary pressures. d. increase unemployment.