In a large open economy, an increase in ________ leads to ________

A) desired saving; an increase in the domestic interest rate
B) desired investment; an decrease in the domestic interest rate
C) desired saving; an increase in desired investment
D) desired saving; a decrease in actual investment
E) none of the above


E

Economics

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In the above figure showing a perfectly competitive firm's total revenue line, the firm's marginal revenue

A) falls as output increases. B) does not change as output increases. C) rises as output increases. D) cannot be determined.

Economics

Why do economists use the concept of elasticity in addition to measurement of the slope of the demand curve?

a. Mathematical equations are favored over graphical analysis. b. Elasticities are independent of the units of measure. c. The concept of elasticity can be used in other areas of economics, whereas the slope of the demand curve is only useful in demand analysis. d. These terms are interchangeable, but elasticity has the more professional sound.

Economics

If a tax is levied on the sellers of a product, then there will be a(n)

a. downward shift of the demand curve. b. upward shift of the demand curve. c. decrease in quantity demanded. d. increase in quantity demanded.

Economics

According to Thomas Robert Malthus, the wage rate would be depressed to the subsistence level because of

A. the power of monopolies. B. the desire of capitalists to exploit the working class. C. the natural tendency of population to grow more rapidly than the production of food. D. the long-run downward trend in investment.

Economics