Which of the following is a reason why trade and geography are linked?
A) There are high costs of locating in large urban areas.
B) Many industries have no economies of scale.
C) Competition means that all firms want to locate near each other.
D) Some locations give access to pools of skilled labor or special resources.
D
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If the Fed raises the U.S. interest rate, the demand for dollars ________ and the exchange rate ________
A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls
Disposable income represents ________
A) the income received by firms, e.g. corporations B) an increase in GDP C) a decrease in GDP D) the after-tax income received by the household
At the equilibrium price, the quantity of the good that buyers are willing and able to buy
a. is greater than the quantity that sellers are willing and able to sell. b. exactly equals the quantity that sellers are willing and able to sell. c. is less than the quantity that sellers are willing and able to sell. d. there is no scarcity.
With time, which one of the following strategies would most likely result in an outward shift in the production possibilities curve of an economy?
a. passage of legislation reducing the workweek to 30 hours b. instituting a tax policy encouraging consumption at the expense of investment c. instituting a tax policy encouraging investment at the expense of consumption d. an increase in the marginal income tax rate, which would reduce the work effort of individuals