Whenever a nation has substantial external debts and assets denominated in foreign currency:
A) it is easier to manage, since changes in value are often offsetting.
B) there can be large and destabilizing wealth effects.
C) its interest payments on the debt will be matched by interest earnings on the assets.
D) the risk of default becomes very large.
Answer: B) there can be large and destabilizing wealth effects.
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What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?
What will be an ideal response?
The per-worker production function is ____ sloped and ____ at a(n) ____ rate
a. negatively; decreases; diminishing b. negatively; decreases; increasing c. positively; increases; increasing d. positively; increases; diminishing
Refer to Figure 8.5. Suppose the firm increases output from 20 to 30 units. In the short run:
A. the firm will employ the same amounts of labor and capital as it would in the long run.
B. the firm will employ 5 more workers and 2 less units of capital than it would in the long run.
C. the firm will employ 5 fewer workers and 2 more units of capital than it would in the long run.
D. the firm will produce the output at a lower cost than it can in the long run.
A demand schedule is a:
A. graph which shows the quantities of a particular good or service that consumers are willing to purchase at various prices. B. table which shows the quantities of a particular good or service that consumers are willing to purchase at various prices. C. line which shows the quantities of a particular good or service that consumers are willing to purchase at various prices. D. table which shows the quantities of a particular good or service that consumers are willing to purchase at various income levels.