Other things equal, an increase in an economy's exports will:
A. lower the marginal propensity to import.
B. have no effect on domestic GDP because imports will change by an offsetting amount.
C. decrease its domestic aggregate expenditures and therefore decrease its equilibrium GDP.
D. increase its domestic aggregate expenditures and therefore increase its equilibrium GDP.
D. increase its domestic aggregate expenditures and therefore increase its equilibrium GDP.
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Factors supplying and absorbing bank reserves constitute the
A) Federal Reserve credit equation. B) bank reserve equation. C) equation of exchange. D) money market.
The rule of equating marginal benefit with marginal cost is proper for economics, but it does not describe the way in which people make non-economic decisions.
Answer the following statement true (T) or false (F)
The conditions in which vertical relationships can enhance a firm's ability to price discriminate include
a. the manufacturer's product is of value to just one type of customer b. the costs of arbitraging the price difference across markets is large c. the manufacturer acquires the distributer in the higher priced market d. lack of competition provides the manufacturer with the ability to price above marginal cost
Oligopoly arises with scale economies that are not large enough to cause a natural monopoly.
Answer the following statement true (T) or false (F)