Use the following table for Country X to answer the next question. Column 1 of the table is the world price of a product, Column 2 is the quantity demanded domestically (Qdd), and Column 3 is the quantity supplied domestically (Qsd). Assume the small-country model is applicable.PriceQddQsd$5.002004004.002503503.003003002.003502501.00400200If Country X opens itself up to international trade, at what world price will it begin importing some units of the product?
A. Any price above $3.00
B. Any price below $3.00
C. Any price below $5.00
D. Any price above $5.00
Answer: B
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If a firm is the sole employer of a factor of production, it is known as
A) a monopsony. B) a monopoly. C) an economically discriminating firm. D) a competitor.
Which of the following is true of the U.S. balance of payments?
A) It includes as receipts all inflows of funds from foreigners to the United States. B) It includes as receipts only inflows of funds used to purchase U.S. produced goods and services. C) It includes as receipts inflows of funds used to purchase U.S. goods or services or to acquire U.S. assets but not funds received as unilateral transfers. D) It includes as receipts inflows of funds used to purchase U.S. goods or services and funds received as unilateral transfers but not inflows of funds used to acquire U.S. assets.
The cost of capital to a firm is equal to
A) a risk-free rate plus an equity premium. B) a risk-free interest rate. C) an equity premium charged by lenders. D) the Treasury bill rate minus an equity premium.
The long run equilibrium level of real output increases whenever: a. AD increases
b. SRAS increases. c. LRAS increases. d. Any of the above occurs.