If real interest rates in the United States fell and real interest rates in England rose, we would expect people to:
a. increase their demand for British pounds.
b. borrow more from U.S. sources

Some superstar athletes in the sports industry earn very high levels of income relative to other occupations, and over time the wage differential has been increasing. What could have caused this?

A) The market power of athletes' unions has increased. B) Technological advances such as cable television has increased the demand for sports entertainment. C) The supply of star athletes has decreased. D) The supply of star athletes has increased due to college athletic programs.

Suppose the marginal product of labor equals 1/L. If the firm can sell its output for $10 per unit, and the wage is $1 per unit, how many units of labor will the firm hire?

A) 0 B) 1 C) 10 D) 100