An international financial crisis can be precipitated when
A) the rate of money supply growth is not the same in all nations.
B) newly-acquired political freedom in a country leads some interest groups to form a coalition limiting competition.
C) many international investors look at the behavior of a few large investors to determine when funds should be withdrawn from a particular country.
D) there is an increase in portfolio investment.
C
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Use the aggregate expenditures model and the following values to answer the next question.AMPCIGT$3500.75$400$400$200Determine the change in the equilibrium level of consumption (find ?C) following a decrease in government spending from 400 to 300 (?G = -$100).
A. negative $400 B. positive $400 C. positive $300 D. negative $300
Which of the following is true?
a. The objective of the firm is to maximize profits, by producing the amount that maximizes the difference between its total revenues and total cost. b. The objective of the firm is to maximize profits, by producing the amount that maximizes the difference between its average revenue and average total cost. c. The objective of the firm is to maximize profits, by producing the amount that maximizes the difference between its average revenue and average variable cost. d. The objective of the firm is to maximize profits, by producing the amount that maximizes the difference between its marginal revenue and marginal cost.
Rent-seeking activity by firms
A. often wastes economic resources. B. increases economic efficiency. C. continues even when an industry is in long-run competitive equilibrium. D. increases the total amount of economic rent available.
Answer the following statements true (T) or false (F)
1. If a firm produces zero output in the short run, then its profits will also be zero. 2. In the long run, a firm can increase its output quantity, but it will be limited by the size of its existing production plant. 3. When diminishing marginal returns starts occurring, the addition of successive units of a variable resource to a fixed resource will cause the firm's production to diminish. 4. Over the range of positive, but diminishing, marginal returns for an input, the total product curve increases at a decreasing rate. 5. If the average product of labor equals 4 at all levels of output, the marginal product of labor is also equal to 4 at all levels of output.