The long-run supply curve for a purely competitive industry would be horizontal when:
A. An increase in product demand causes an increase in resource prices
B. An increase in product demand causes a decrease in resource prices
C. A decrease in product demand causes a decrease in the number of firms
D. A decrease in product demand causes no effect in resource prices
D. A decrease in product demand causes no effect in resource prices
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All else equal, if U.S. stocks are perceived to have become riskier compared to financial investments in other countries, then the market equilibrium value of the exchange rate for the U.S. dollar will:
A. fall. B. become fixed. C. be equal to the value chosen by the Federal Reserve. D. rise.
A plan that sets targets to cover all major aspects of the national economy is known as a/an _____ plan:
(a) interindustry (b) complete (c) comprehensive (d) economic
A major disruption in financial markets characterized by sharp declines in asset prices and firm failures is called a
A) financial crisis. B) fiscal imbalance. C) free-rider problem. D) "lemons" problem.
The one disadvantage of paper money is that it is easier to
A. duplicate and counterfeit. B. carry. C. divide. D. store and use at a later time.