An economy with no government and no foreign trade tends to move toward equilibrium GDP because at output levels greater than equilibrium GDP, inventories are
A. Increasing, and actual investment is less than desired investment.
B. Decreasing, and actual investment is less than desired investment.
C. Increasing, and actual investment exceeds desired investment.
D. Decreasing, and actual investment exceeds desired investment.
Answer: C
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Assume that a monopolist practices perfect price discrimination. The firm's marginal revenue curve will
A) be perfectly elastic. B) be equal to its demand curve. C) lie below its demand curve. D) be perfectly inelastic.
The HO theorem states that a country will have comparative advantage in the good whose production is relatively intensive in the ________ with which the country is relatively abundant
A) tastes B) technology C) factor D) opportunity costs
A profit-maximizing firm will employ labor up to the point where MRP = wage
Indicate whether the statement is true or false
The summary of the flows of goods, services, assets, and currency in and out of a country in a particular year is the ________________________.
Fill in the blank(s) with the appropriate word(s).