When price = ATC = MC = MR,
A. economic profits are positive.
B. economic profits are zero.
C. economic profits are negative.
D. opportunity costs are zero.
B. economic profits are zero.
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What factors cause private and social rates of return for primary and secondary education to diverge in developing countries?
What will be an ideal response?
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and real GDP falls. b. The quantity of real loanable funds per time period falls, and real GDP rises. c. The quantity of real loanable funds per time period rises, and real GDP remains the same. d. The quantity of real loanable funds per time period and real GDP remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
By how much does the real, bilateral exchange rate change when the nominal, bilateral exchange rate changes from $1.40/£ to $1.60/£, the U.S. tradable basket from $2,100 to $2,200 and the British tradable basket from £1,500 to £1,600?
a. The real exchange rate rises by 16.35%. b. The real exchange rate rises by 3.1% c. The real exchange rate falls by 3.1% d. The real exchange rate falls by 10.8% e. The real exchange rate rises by 12.5%.
The marginal propensity to save (MPS) can be found using the equation: (1 - MPC)
Indicate whether the statement is true or false