If the demand for money increases as a result of a(n) _______ in the price level, the interest rate will ______.
a) increase; increase
b) increase; decrease
c) decrease; increase
d) decrease; decrease
Answer: a) increase; increase
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When allocative efficiency occurs,
A) an economy produces the goods and services most highly valued. B) marginal benefit exceeds marginal cost by some amount. C) technology must be increasing. D) we can simultaneously produce more of all goods. E) marginal benefit exceeds marginal cost by as much as possible.
All of the following are examples of physical capital EXCEPT
A) buildings. B) machinery. C) company stocks and bonds. D) a hydroelectric power plant.
The firm's efficient scale is the quantity of output that minimizes
a. average total cost. b. average fixed cost. c. average variable cost. d. marginal cost.
When a nation's currency appreciates, it purchases ___ units of a foreign currency and its currency is said to__
a. fewer; strengthen b. more; strengthen c. fewer; weaken d. more; weaken