If the United States has a net export deficit, which of the following must be true? (Assume that the capital account is zero and net transfers are zero.)
A) Net foreign investment must be negative as well.
B) Domestic private saving must be less than net foreign investment.
C) Domestic public saving must be less than net foreign investment.
D) The balance on the financial account must equal the balance on the current account.
A
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The MRP curve for a monopolist in the product market is
A) the same as the MRP curve for a perfectly competitive firm in the product market. B) to the left and below the MRP curve for a perfectly competitive firm in the product market. C) to the right and above the MRP curve for a perfectly competitive firm in the product market. D) upward sloping and below the MFC curve for a perfectly competitive firm in the product market.
A firm operating in a perfectly competitive market may earn positive, negative, or zero economic profit in the short run
a. True b. False Indicate whether the statement is true or false
A World View article titled "Secondhand Smoke Kills 600,000 People a Year: Study" implies the harm caused to nonsmokers is
A. An example of a public good. B. An example of government failure. C. Included in the market price of cigarettes. D. An example of externality costs.
The kinked-demand curve model of oligopoly:
A. assumes a firm's rivals will ignore any price change it may initiate. B. suggests a firm's rivals will ignore a price cut but match a price increase. C. assumes a firm's rivals will match any price change it may initiate. D. suggests small changes in unit costs will have no effect on equilibrium price and output.