In the IS model, assuming that the real interest rate does not change, an increase in autonomous ________ leads to a decrease in equilibrium saving
A) investment
B) consumption
C) net exports
D) all of the above
E) none of the above
E
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A positive externality clearly occurs when
A) a person behaves in the public interest. B) a person's action unintentionally benefits other people. C) a person behaves only with courtesy and social grace. D) a person couldn't care less about anybody else.
Which of the following statements regarding an average-cost pricing rule for a natural monopoly is WRONG?
A) It sets price equal to average total cost. B) It is efficient. C) The firm makes zero economic profit. D) More output is produced than if the firm maximized profit.
Which of the following shifts short-run aggregate supply left?
a. an increase in price expectations b. an increase in the actual price level c. a decrease in the money supply d. a decrease in the price of oil
Over time, the terms of trade of Latin American countries have generally ________, and the terms of trade of developed countries have generally ________
A) worsened; worsened B) worsened; improved C) improved; worsened D) improved; improved