________ in the domestic interest rate causes the demand for domestic assets to shift to the right and the domestic currency to ________, everything else held constant
A) An increase; appreciate
B) An increase; depreciate
C) A decrease; appreciate
D) A decrease; depreciate
A
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If the area between the line of equality and the Lorenz curve is 1,250, and the entire area beneath the line of equality is 5,000, the Gini ratio is
A) 0.25. B) 4.00. C) 0.33. D) 0.80.
A preference for policies that place limits on trade is called:
A. liberalization. B. free trade. C. protectionism. D. autarky.
If a firm shuts down in the short run, then
a. total revenue and total cost drop to zero b. total revenue drops to zero, but the firm must still pay its fixed cost c. total revenue drops to zero, but the firm must still pay some variable cost d. total cost drops to zero, but the firm still earns some residual revenues e. neither total revenue nor total cost drops to zero
In the long run, perfectly competitive firms earn zero economic profit; this means that each firm is
a. always trying to move into a more profitable market. b. content to stay in its market. c. always facing new entrants to its market. d. earning negative accounting profit.