Exhibit 10-2 Labor and output data
Labor
Output
0
    0
1
  20
2
  45
3
  80
4
100
5
110
In Exhibit 10-2, if product price is fixed at $5, the MRP of the third worker is equal to:

Suppose the supply of textbooks is upward sloping and shifts leftward due to higher ink and paper costs. Which of the following events would leave the equilibrium price of textbooks at the same level observed before the supply shift?

A) Demand is perfectly elastic (horizontal). B) Demand is downward sloping and shifts leftward. C) all of the above D) none of the above

If a strong, persistent trend in the exchange rate appears to be inconsistent with any form of economic fundamentals, it is called

A. a speculative bubble. B. overshooting. C. uncovered speculation. D. exchange rate parity.