The market supply curve of labor for an occupation is positively sloped in part because an increase in the wage rate will encourage more people to work in that occupation.

Which of the following is the most valid criticism of flexible exchange rates?

a. They can result in currency shortages. b. They are operated under the Bretton Woods system. c. They can contribute to inflationary pressures. d. They feature very tight government control.

Which of the following market transactions of final goods and services are excluded from the computation of U.S. GDP??

A. ?Purchases of products such as wine, beer, hard liquor, and cigarettes. B. ?Secondhand transactions, such as when a used car is sold. C. ?New purchase that a resident of one state makes in a different state. D. ?Purchases of necessities such as groceries and rent.