If a change in government spending causes "crowding in" in an open economy, which of the following might increase in addition to consumption and investment?
A) unemployment B) net exports
C) supply and demand D) stock of capital
B
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For third-party certification to overcome the problem of ________, consumers must believe that it is ________.
A) adverse selection; unbiased B) adverse selection; biased C) moral hazard; unbiased D) moral hazard; biased
What is the neutrality of money with respect to the quantity theory of money?
A. The money supply can affect the growth rate of prices (inflation) in the long run. B. The money supply cannot affect the growth rate of real GDP in the long run. C. The money supply can affect the growth rate of the real GDP in the short run. D. All of the above.
In the above graph, what is the marginal rate of technical substitution at point D?
A. greater than 1.5 B. less than 2.5 C. less than 1.5 D. greater than 2.5
Profit per unit is maximized when the firm produces the output where
A. The MC is minimized. B. The ATC is minimized. C. MC equals MR. D. Demand equals MC.