Explain why a country's gains from trade may not accrue to nationals. Indicate the differential effects on GNP and GDP
What will be an ideal response?
Discussed in the chapter; students should note that some of the value of output is repatriated by multinational corporations.
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As a competitive firm hires increasing amounts of labor, the value of marginal product of labor
A) decreases. B) increases. C) remains constant. D) decreases then increases.
If the four-firm concentration ratio is a very small number, then
A) there is a high degree of competition in the market. B) there is no competition in the market. C) the market must be dominated by a few firms. D) the market is not perfectly competitive.
In which of the following situations might you expect expansionary monetary policy to reduce the unemployment rate?
A) if changes in monetary policy are unanticipated B) if expectations are rational C) if actual inflation is lower than expected D) if actual inflation is higher than expected
(Last Word) Which of the following explanations argues that the Great Recession resulted from asset-price bubbles caused by euphoria and debt-fueled speculation?
A. Minsky explanation. B. Austrian explanation. C. Stimulus explanation. D. Structural explanation.