An increasing-cost industry is one in which the average cost of production ________ as the total output of the industry ________.
A. increases; increases
B. increases; decreases
C. decreases; increases
D. None of these; there are no increasing-cost industries.
Answer: A
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If the MPC is 0.8, then the MPS is
A) 0.2. B) 1. C) 5. D) 8.
Diversification involves:
A. investing all your money in one company. B. buying only one kind of stock. C. buying only low-risk bonds. D. None of these statements is true.
According to the Heckscher-Ohlin model:
a. a relatively labor scarce country produces labor intensive goods. b. the labor productivity varies across different countries. c. the technological advancement varies across countries. d. the taste and preference patterns of the consumers are not similar across the countries. e. a capital abundant country exports sophisticated, manufactured products.
The Phillips curve describes a trade-off between interest rates and unemployment
Indicate whether the statement is true or false