For a perfect competitor, the marginal revenue curve will be
A. vertical.
B. negatively sloped.
C. horizontal.
D. positively sloped.
Answer: C
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Suppose the government wants to maintain a balanced budget. To achieve this goal, when the economy falls into recession government would need to ________ taxes, which would cause aggregate demand to ________
A) decrease; decrease B) increase; increase C) increase; decrease D) decrease; increase
Nondeliverable forward exchange markets in centers such as Hong Kong and Singapore help to circumvent which problem?
A) loss of goods shipped from Hong Kong and Singapore B) inconvertible currencies cannot be traded in foreign markets C) lag between the spot exchange date and the value date D) high travel costs from Asia to "traditional" foreign exchange markets E) unstable currencies that hold no purchasing power
Which of the following will be most likely to cause the production possibilities curve for a country to shift inward?
a. an increase in the labor force b. an increase in unemployment c. development of an improved technological method of production d. a decrease in the stock of physical capital
People who focus on the "competitiveness" of the United States are
A) focusing on the right thing if the United States is to stay a leading economic power. B) treating the United States as if it is a business firm. C) also focusing on the importance of education. D) correctly recognizing that trade is a zero-sum game.