If a country's budget deficit decreases, then the exchange rate
a. rises, which raises net exports.
b. rises, which reduces net exports.
c. falls, which raises net exports.
d. falls, which reduces net exports.
c
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In a purely competitive labor market, a profit-maximizing firm will hire labor up to the point where the marginal revenue product of labor equals the
A. wage rate, or the price of labor. B. marginal cost of one extra unit of output. C. price of the product. D. average cost of each unit of output.
Most of the pressure for a monetary growth rule has disappeared because since 1980
A) the relationship between movements in interest rates and movements in real GDP and the price level have become much weaker. B) the relationship between movements in the money supply and movements in real GDP and the price level have become much stronger. C) the relationship between movements in the money supply and movements in real GDP and the price level have become much weaker. D) the relationship between movements in interest rates and movements in real GDP and the price level have become much stronger.
Compared to the long-run absolute elasticity of demand, the short-run absolute elasticity of demand is
A) smaller. B) the same. C) larger. D) either smaller or larger, depending on other factors.
(Consider This) The Consider This box "Of Catfish and Art (and Other Things in Common)" lists examples of recent antitrust cases involving:
A. monopolization. B. tying contracts. C. price-fixing. D. horizontal mergers.