The rate of interest is determined by the
a. quantity of money available on the market
b. supply and demand for loanable funds
c. marginal factor cost of capital
d. firm's MRP and the price of the good
e. firm's MPP and the price of the good
B
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Developing countries must confront industrial countries' trade restrictions, such as tariffs and quotas
a. True b. False
If marginal costs increase, a monopolist will:
a. decrease price and increase output. b. decrease both price and output. c. increase price and decrease output. d. increase both price and output. e. keep both price and output at the same level.
In the Keynesian aggregate expenditures model, "aggregate expenditures" refer to:
a. the amount of GDP that could be produced if unemployment were zero. b. the combined expenditures of consumers, businesses, governments, and foreigners (net exports). c. the amount of demand for consumer goods that would arise if all citizens had all the income they wanted. d. consumer spending measured in constant prices.
Suppose in the country of Jumanji that the price of wheat with no trade allowed is above the world price of wheat. If Jumanji allows free trade, will Jumanji be an importer or an exporter of wheat?