In a saving—investment diagram for a small open economy
A) the saving curve is vertical at some fixed level of output.
B) the saving curve is horizontal at some fixed interest rate.
C) the real interest rate is fixed at the world real interest rate.
D) equilibrium requires that Sd = Id.
C
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The above figure shows the cost curves for a perfectly competitive firm. If all firms in the market have the same cost curves and the price equals $16 per unit
A) the market is in its long-run equilibrium. B) over time, firms will leave this market. C) the firm is making zero economic profit. D) over time, the price will fall as new firms enter the market.
If Tanisha can audit more tax returns in one hour than Libby, then Tanisha has an absolute advantage in auditing tax returns
Indicate whether the statement is true or false
All of the following are examples of product-specific services except which one?
A) displaying a product B) offering the lowest price for the product C) demonstrating a product D) providing information about the product
A rise in the interest rate tends to
a. reduce many kinds of spending b. stimulate investment in high-profit industries c. cause bond prices to increase d. encourage confidence in the Fed's control over the economy e. suggest a downturn in the economy is coming within 6 months