If the United States is a "net borrower" from abroad,
A) national saving is less than domestic investment.
B) net foreign investment must be positive.
C) net capital flows must be negative.
D) the United States must be exporting more than it is importing.
A
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The “law” of diminishing returns is also referred to as
A. the “law” of diminishing returns to scale. B. the “law” of variable input proportions. C. diminishing average physical product. D. the “law” of decreasing cost.
A country on a gold standard was able to maintain people's confidence in the value of its currency by:
a. printing more and more paper money. b. restricting international exchange of goods and services. c. ensuring the convertibility of paper money into gold. d. maintaining a fixed stock of foreign currencies. e. ensuring balance of payment surplus.
There will be an increase in supply when
A) a consumer's income increases. B) there is an improvement in technology. C) the demand curve shifts. D) the market price rises from $3 to $4.
We cannot predict the effect on the equilibrium quantity, but know that the market clearing price will increase when
A) supply decreases and at the same time demand increases. B) supply increases and demand increases simultaneously. C) supply and demand decreases simultaneously. D) supply and demand increases simultaneously.