With perfect asset substitutability and capital mobility the domestic interest rate is equal to the foreign rate
Indicate whether the statement is true or false
TRUE
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Natasha is going to buy a risky asset that has an expected value of $62, which yields an expected utility of 146. Equivalently, she could get utility of 146 from a certainty equivalent of $43. What is Natasha's risk premium?
A) $19 B) $43 C) $103 D) $105
The more capital a laborer works with, the more output the worker creates
Indicate whether the statement is true or false
Exhibit 7-12 Marginal revenue and cost per unit curves
?
As shown in Exhibit 7-12, if the firm's price is OD, the firm will supply
A. zero units of output because it is unprofitable. B. X units and incur a loss. C. Y units and break even. D. Z units and make an economic profit.
Figure 10.1 depicts a firm's marginal revenue product curve. The marginal revenue product curve is negatively sloped because ________ decreases as the firm uses more labor.
A. the hourly wage B. the marginal product of labor C. the product price D. None of these