Everything else held constant, when a country's currency depreciates, its goods abroad become ________ expensive while foreign goods in that country become ________ expensive
A) more; less
B) more; more
C) less; less
D) less; more
D
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Which of the following is a question that a behavioral economist would seek to answer but a traditional economist would not?
a. How do rational consumers maximize their marginal utility? b. Do real-life consumers actually maximize their marginal utility? c. What are the mathematical conditions for consumer equilibrium? d. How does the marginal utility curve relate to the demand curve?
Savings and investment are equal:
A. at the equilibrium in the market for loanable funds. B. when banks operate according to banking regulations. C. because banks regulate their flow. D. at an interest rate set by the Fed.
The exchange efficiency condition holds:
A. if every pair of individuals has inverse marginal rates of substitution for every pair of goods. B. if every pair of individuals shares the same marginal rate of substitution for every pair of goods. C. if every pair of individuals consumes the same quantities of every pair of goods. D. if every pair of individuals have the same level of utility.
When the long-run average total cost curve is increasing, this means that there are
a. economies of scale b. diseconomies of scale c. constant returns to scale d. diminishing returns e. some fixed factors of production