All else constant, an increase in the level of competition among firms would be expected to reduce the amount of X-inefficiency that exists in a particular industry
Indicate whether the statement is true or false
TRUE
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Country X exports 10 million tonnes of wheat to Country Y. Which of the following will happen in this case?
A) Country X's GNP will decrease. B) Country Y's GNP will increase. C) Country Y's GDP will increase. D) Country X's GDP will increase.
Reducing a nation’s budget deficit through ________ policy will not always be a successful method of reducing its trade deficit, due to other elements of the national saving and investment identity.
a. international b. monetary c. fiscal d. investment
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index rises, and current international transactions become more negative (or less positive). b. There is not enough information to determine what happens to these two macroeconomic variables. c. The GDP Price Index rises, and current international transactions become more positive (or less negative). d. The GDP Price Index and current international transactions remain the same. e. The GDP Price Index falls, and current international transactions become more negative (or less positive).
If fixed costs are $960, variable costs are $1,440, and output is 12, then average total cost equals:
A. $ 80. B. $120. C. $200. D. $100.