A government budget deficit will lead to:
a. an increase in the supply of loanable funds and an increase in real interest rates.
b. a decrease in the supply of loanable funds and an increase in real interest rates.
c. an increase in the supply of loanable funds and a decrease in real interest rates.
d. a decrease in the supply of loanable funds and a decrease in real interest rates.
b
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The figure above shows the demand, marginal revenue, and marginal cost curves for Paul's Parrot pillows, a single-price monopoly producer of pillows stuffed with parrot feathers. When Paul maximizes his profit, his total economic profit is
A) $60. B) $405. C) $0. D) $210,000. E) unknown because more information is needed to determine Paul's profit.
A free good lacks the element of
a. usefulness. b. scarcity. c. transfer ability. d. tangibility.
Being first only works
A) if accounting profits are earned in the first year. B) if the entrepreneur has the working capital of a large firm. C) in a winner take all situation. D) all of these choices.
Balance-of-payments accounts are out of balance
a. only when imports are greater than exports. b. when exports are either greater or less than imports. c. only when exports are greater or less than imports over a sustained period. d. never.