In a linear equation relating income and consumption, you know that the intercept is $1,000 and the slope of the line is .4. If income is $20,000, then consumption is:

Research shows that when exchange rates are more volatile, the price differentials are ____ and the convergence is _____.

A) smaller; faster B) smaller; slower C) larger; slower D) larger; faster

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

a. The labor supply will stay unchanged until the wages paid to pear pickers change. b. The labor supply will decrease. c. The labor supply will increase. d. The labor supply may fall or rise, depending on the price of pears.