Classical economists and monetarists believe that the economy operates at full- employment GDP. Therefore, any increase in the money supply will cause both nominal and real GDP to increase
Indicate whether the statement is true or false
F
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The opportunity cost of owning and using a firm's capital is defined as the capital's
A) variable cost. B) fixed cost. C) economic depreciation. D) nonpayment depreciation. E) explicit cost.
The least costly combination of inputs is influenced by the relative prices of inputs.
Answer the following statement true (T) or false (F)
All other factors being constant, a reduction in price tends to cause which of the following?
A) an increase in supply and an increase in demand B) a reduction in supply and an increase in demand C) an increase in quantity supplied and a reduction in quantity demanded D) a reduction in quantity supplied and an increase in quantity demanded
Consider the following information, and assume that opportunity costs are constant: On one hand, residents of Country A can produce more corn in a year than residents of Country B, but they can produce computers at a lower opportunity cost than residents of country B. On the other hand, residents of country B can produce more computers in a year than residents of Country A, but they can produce corn at a lower opportunity cost than residents of country A. It can be concluded that residents of
A. Country B should produce computers and trade them for corn produced in Country B. B. Country A should produce computers and trade them for corn produced in Country B. C. Country A should produce corn and trade it for computers produced in Country B. D. both countries should choose not to trade.