If the real interest rate in the domestic loanable funds market increases,
a. firms will have an added incentive to undertake investment projects.
b. households will save less.
c. the net inflow of foreign capital will tend to increase.
d. it will be cheaper to purchase goods and services now rather than in the future.
C
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Consumer equilibrium occurs at: a. the point where the indifference curve crosses the budget line from below. b. any point of intersection between an indifference curve and the budget line. c. the midpoint of every indifference curve
d. the point of tangency between an indifference curve and the budget line.
Economic rent is earnings in excess of what?
a. opportunity cost b. total costs c. taxes d. hidden costs
Refer to the diagram below. If box E represents government, box C businesses, and box A households, then flows (11) and (12) would represent:
A. Goods and services
B. Government expenditures
C. Resources
D. Net taxes
Our fastest growing trade imbalance is with
A. China. B. Japan. C. Canada. D. Mexico.