Government borrowing may crowd out borrowing by private interests because
A) funds are not available at any interest rate.
B) the equilibrium interest rate increases.
C) the supply curve shifts to the left.
D) None of the above.
B
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An increase in supply will cause the equilibrium price to ________ and the equilibrium quantity to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
All these factors can lead to economies of scale in production, except:
a. division of labor that helps in specialization. b. merger of two firms. c. hiring larger machines which are more efficient than the smaller ones. d. increase in overhead expenses. e. research and development.
Increases in worker productivity usually reflect
A. growth of labor unions. B. management that pushes workers to work longer and harder. C. elimination of unemployment benefit programs. D. increased education and improved equipment.
The DD schedule shows all combinations of which 2 variables so that the output market is in equilibrium?
A) imports and exports B) exports and the exchange rate C) foreign prices and the exchange rate D) output and the exchange rate E) output and exports