If foreign holdings of U.S. dollars increase, holding all else constant
A) the balance on the U.S. financial account will increase.
B) the balance on the U.S. current account will increase.
C) the U.S. balance of trade will increase.
D) the balance on the U.S. capital account will increase.
A
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Which factor of production does human capital enhance?
i. land ii. labor iii. capital A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Which of the following is a common determinant of both supply and demand?
A) income B) future expectations C) tastes and preferences D) sales tax
Answer the following statements true (T) or false (F)
1. Average variable cost (AVC) is calculated by dividing the change in total cost between two levels of output by the change in output. 2. Many tasks can be performed with a range of combinations of labor and physical capital. When considering long-term costs, physical capital and labor can often substitute for each other. 3. The term diseconomies of scale refers to the situation where the cost per unit goes down as the quantity of output goes up. 4. If the quantity of a certain product demanded in the market is much greater than the quantity found at the bottom of the long-run average cost curve, where the cost of production is lowest, the market will have many firms competing. 5. A perfectly competitive firm can sell as large a quantity as it wishes, as long as it accepts the prevailing market price.
If the average price level increases 10 percent per year, and the velocity of money is 2, then the:
A. inflation rate is 5 percent. B. inflation rate is 2 percent. C. inflation rate is 10 percent. D. inflation rate is 20 percent.