If the cost of labor increases, the isocost line will
A) stay the same.
B) shift outward in parallel fashion.
C) rotate inward around the point where only capital is employed in production.
D) shift inward in parallel fashion.
C
Economics
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If the U.S. interest rate differential falls, then the exchange rate
A) does not change. B) definitely falls. C) definitely rises. D) falls only if it was the U.S. interest rate that changed. E) rises only if it was the foreign interest rate that changed.
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Which of the following is a market-based solution to the problem of adverse selection?
A) Taxation B) Signaling C) Sniping D) Subsidization
Economics