When inflation occurs, net exports will
A. increase as imports decrease.
B. increase as exports increase.
C. decrease as imports decrease.
D. decrease as imports increase.
Answer: D
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Use the following graph to answer the next question.
A firm that has the long-run cost curves shown in the graph above would not be able to ________.
A. exploit economies of scale B. serve an increasing share of the market at lower and lower unit costs C. attain lower unit costs by reducing its output level D. have an entry barrier protecting it from new entrants into the market
The labor supply curve is generally considered to be upward-sloping because the opportunity cost of leisure:
A. increases as wages get higher. B. has nothing to do with wages. C. decreases as wages get higher. D. remains unchanged as wages get higher.
Loans made between borrowers and lenders are:
A. usually not taxable at the federal level. B. legal only in the state of origination. C. assets of the borrowers. D. assets of the lenders.
Temporary monopolies via the provision of sole ownership rights to profit from the production, use, or sale of a good are provided by:
A. profit-maximizing behavior. B. network externalities. C. patents and copyrights. D. natural monopolies.