When the quantity demanded of labor exceeds the quantity of labor supplied, the market wage rate is
a. below equilibrium
b. above equilibrium
c. at its equilibrium level
d. equal to the workers' MRP
e. equal to the workers' opportunity cost
A
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For a country with flexible exchange rates, if a nation's interest rate rose, what effect would this have on its current account balance?
a. No effect because interest has no effect on the current account. b. Increase it because foreign capital flows would be attracted to the nation thereby building economic strength. c. Decrease it because the exchange rate will appreciate. d. Increase it because the exchange rate will depreciate. e. Decrease because the exchange rate will depreciate.
In the long run, if price is less than average cost
A) there is an incentive for firms to exit the market. B) there is profit incentive for firms to enter the market. C) the market must be in long-run equilibrium. D) there is no incentive for the number of firms in the market to change.