Employers will hire more units of a resource if the:
A. price of the resource increases.
B. productivity of the resource increases.
C. price of the good being produced declines.
D. price of a complementary resource rises.
Answer: B
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When the central bank ________ the money supply, the LM curve shifts to the right, interest rates ________, and equilibrium aggregate output ________, everything else held constant
A) increases; fall; increases B) increases; rise; decreases C) decreases; rise; decreases D) decreases; fall; increases
If a firm’s activities generate detrimental externalities, the marginal social cost will be less than the marginal private cost.
Answer the following statement true (T) or false (F)
If there is an increase in industry supply while the industry demand remains the same, then an individual firm in a perfectly competitive industry currently earning negative profits will see its profits
A. decrease further. B. increase. C. not change. D. impossible to determine
Lending abroad represents:
A) a capital outflow. B) a capital inflow. C) positive net savings. D) none of the above.