Which of the following statements regarding the marginal product curve is FALSE?
A) Increasing marginal returns occur only when the total product increases as the number of workers increases.
B) Increasing marginal returns is due to greater efficiency from specialization in the production process.
C) The law of diminishing returns applies in the short run.
D) Along the marginal product curve, increasing marginal returns occur first and then diminishing marginal returns.
A
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Which of the following is NOT a disadvantage of controls on capital outflows?
A) The controls may lead to excessive risk taking by the domestic banks. B) They are seldom effective during a crisis. C) Capital flight may increase after they are put in place. D) Controls often lead to an increase in government corruption.
A competitive equilibrium is described by
A) a price only. B) a quantity only. C) the excess supply minus the excess demand. D) a price and a quantity.
In the fall of 2007, most economists felt that the
a. unemployment was at the natural rate. b. unemployment rate was below the natural rate. c. inflation rate was above the natural rate. d. inflation rate was below the natural rate.
Which of the following is not a segment of the foreign exchange market?
a. The stock market for multinational companies. b. The swap market. c. The outright forward market. d. The spot market. e. All of the above are segments of the foreign exchange market.