If the Japanese government enters the foreign exchange market and sells yen to maintain a specific exchange rate with the dollar, the dollar will ________ and the yen will ________
A) depreciate; depreciate B) depreciate; appreciate
C) appreciate; depreciate D) appreciate; appreciate
C
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A technological change that raises the value of marginal product of capital ________ the rental rate of capital because the ________
A) raises; supply curve of capital shifts leftward B) lowers; supply curve of capital shifts rightward C) raises; demand curve for capital shifts rightward D) lowers; demand curve for capital shifts leftward
China's prosperity brings income gap The Asian Development Bank [ADB] reports that China has the largest gap between the rich and the poor in Asia
Ifzal Ali, the ADB's chief economist, claims it is not that the rich are getting richer and the poor are getting poorer, but that the rich are getting richer faster than the poor. Source: Financial Times, August 9, 2007 Explain how the distribution of personal income in China can be getting more unequal even though the poorest 20 percent are getting richer.
Monopolistic competition is characterized by firms:
A. producing at optimal productive efficiency. B. making economic profits in the long run. C. producing where price equals marginal cost. D. producing differentiated products.
Firms will employ an input up to the point where
A. the input's price equals its marginal product. B. its marginal cost equals its marginal product. C. the input's price equals its marginal revenue product. D. the wage rate equals the productivity of capital.