If a subsidy is granted to perfectly competitive firms that provide external benefits to society, the firm's marginal cost curve will shift ________ and the industry supply curve will shift to the ________.
A. down; right
B. up; left
C. up; right
D. down; left
Answer: A
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Refer to Table 8-1. Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Assume all of the coffee beans are used in the production of the coffee drinks. Using the information in the above table, nominal GDP for this simple economy equals
A) 3,090 units. B) $7,250. C) $8,750. D) $9,750.
Foreign repercussions of changes in domestic imports cause the true domestic spending multiplier to be less than 1/(MPS+MPI)
a. True b. False Indicate whether the statement is true or false
A rise in the government budget deficit
a. increases the interest rate so in the market for foreign-currency exchange, supply shifts right. b. increases the interest rate so in the market for foreign-currency exchange,supply shifts left. c. decreases the interest rate so in the market for foreign-currency exchange, supply shifts left. d. decreases the interest rate so in the market for foreign-currency exchange supply shifts right.
Explain the concept of "learning by doing" with respect to infant industry protection
What will be an ideal response?