An increase in product price implies that
A. the firm's demand for labor increases.
B. the firm's marginal factor cost will increase.
C. the wage rate the firm pays will increase.
D. the firm's demand for labor decreases.
Answer: A
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Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and current international transactions become more negative (or less positive). b. There is not enough information to determine what happens to these two macroeconomic variables. c. The quantity of real loanable funds per time period and current international transactions remain the same. d. The quantity of real loanable funds per time period rises, and current international transactions remain the same. e. The quantity of real loanable funds per time period rises, and current international transactions become more positive (or less negative).
Figure 4-20
Refer to . Suppose the same S and D curves apply, and a tax of the same amount per unit as shown here is imposed. Now, however, the sellers of the good, rather than the buyers, are required to pay the tax to the government. Now, relative to the case depicted in the figure,
a.
the burden on buyers will be larger and the burden on sellers will be smaller.
b.
the burden on buyers will be smaller and the burden on sellers will be larger.
c.
the burden on buyers will be the same and the burden on sellers will be the same.
d.
The relative burdens in the two cases cannot be determined without further information.
Which of the following statements concerning monopoly is TRUE?
a. Monopoly firms are always larger than perfectly competitive firms. b. Monopolists produce more output than a competitive market with the same demand and cost structure. c. Barriers to entry do not prevent other firms from entering a monopolized industry. d. A monopoly has no rivals.
A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:
Refer to the above table. In moving from combination E to F, the opportunity cost of an additional unit of steel is:
A. 5 units of steel
B. 0 unit of wheat
C. 1 unit of steel
D. 30 units of wheat