Suppose the world economy is divided into two halves. In Region A, all economies experience a decrease in desired saving, while desired saving is unchanged in Region B
If there is open trade and perfect capital mobility across the two regions, which of the following is true? A) Actual saving in Region B has increased.
B) Actual investment in Region A has increased.
C) Region A's imports from Region B have decreased.
D) all of the above
E) none of the above
A
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The highest fifth of all families receive approximately ________ of the distribution of annual money income among families
a. 5 percent b. 10 percent c. 25 percent d. 50 percent
Monopolistic competition is similar to a monopoly because firms in both industries
A. sell products with no close substitutes. B. sell differentiated products. C. have freedom of entry and exit. D. have some control over price.
The changing of government expenditures to achieve national economic goals is
A. inflationary fiscal policy. B. discretionary fiscal policy. C. automatic fiscal policy. D. budget deficit policy.
A purely competitive wheat farmer can sell any wheat he grows for $25 per bushel. His five acres of land show diminishing returns because some are better suited for wheat production than others. The first acre can produce 1,000 bushels of wheat, the second acre 900, the third 800, and so on.
a. Use the table below to answer the following questions. How many bushels will each of the farmer’s five acres produce? How much revenue will each acre generate? What are the TR and MR for each acre?
Instructions: Enter your answers as whole numbers.
b. If the marginal cost of planting and harvesting an acre is $20,000 per acre for each of the five acres, how many acres should the farmer plant and harvest? acres.