Spencer and Brander's model highlights the existence of
A) aircraft industries.
B) excess returns present in highly competitive markets.
C) excess returns, or rents, available in non-competitive markets.
D) the futility of government bureaucrats' attempts to build an airplane.
E) natural advantages in foreign technology firms.
C
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Which of the following statements is true?
A) Optimizers with the highest opportunity cost of time push up the rental price of apartments with the highest commute time. B) Optimizers with the lowest opportunity cost of time push up the rental price of apartments with the lowest commute time. C) As the rental prices of downtown apartments rise, only workers with the highest opportunity cost of time will be willing to rent them. D) As the rental prices of downtown apartments rise, only workers with the lowest opportunity cost of time will be willing to rent them.
Marginal utility theory predicts that if a consumer's income decreases, the consumer
A) buys fewer normal goods. B) buys fewer inferior goods. C) buys more of all goods. D) might either increase or decrease purchases of normal goods.
Which of the following statements is true with regard to the Fed's response to the economic crisis of 2008?
a. Although the Fed lowered its interest rates to nearly zero, there are other actions it can take to improve the economy. b. Because the Fed lowered its interest rates to nearly zero, there are no other actions it can take to improve the economy. c. Since the Fed did not lower its interest rates to near zero, there are still other actions it can take to improve the economy. d. none of the above
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and reserve-related (central bank) transactions in the context of the
Three-Sector-Model? a. The quantity of real loanable funds per time period falls and reserve-related (central bank) transactions become more negative (or less positive). b. The quantity of real loanable funds per time period falls and reserve-related (central bank) transactions remain the same. c. The quantity of real loanable funds per time period and reserve-related (central bank) transactions remain the same. d. The quantity of real loanable funds per time period rises and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.